Buchanan Mortgage Holdings LLC helped secure a $46.5 million construction loan for a 149-unit multifamily development in San Diego. The three-year floating-rate construction loan was sponsored by Murfey Co.
The $46.5 million loan is specifically financing Stella Apartments, a new apartment development at 3104 El Cajon Blvd. in San Diego.
“This was a unique opportunity to finance the development of a well-located, class-A multifamily project in a core San Diego submarket and establish a new lending relationship with a highly regarded San-Diego based sponsor,” Scott Magoffin, Buchanan Street Partners’ senior vice president and head of debt investments, said in a statement. “We were able to provide an attractive single-source financing solution for the sponsor by offering higher leverage than what was available from traditional banks while also eliminating the need for third-party mezzanine debt or preferred equity.”
Stella Apartments would rise nine floors and occupy 72,500 square feet, according to Buchanan Mortgage Holdings.
Construction would start in March and continue through April 2027, per CoStar.
The new apartment building is being constructed in San Diego’s North Park neighborhood. North Park, according to a Buchanan Street Partners statement, “has seen significant growth and revitalization in recent years, attracting young professionals and families with its appeal to those seeking urban living as well as connections to major employers and entertainment.”
JLL Capital Markets represented Murfey Co., the San Diego-based that sponsored financing for Stella Apartments.
Buchanan Mortgage Holdings is a subsidiary of Newport Beach-based Buchanan Street Partners.
