SAN DIEGO, CA – HFF announced today that it has secured $7.46 million in construction-permanent financing for the development of Hillcrest Apartments, a 36-unit, five-story apartment building in San Diego’s Hillcrest neighborhood.
HFF worked on behalf of Hillcrest Veritas, LP to secure the 71 percent loan-to-cost, 12-year, fixed-rate construction-permanent loan through a correspondent life company lender. The construction loan converts to a permanent loan at stabilization and the lender allowed the borrower to lock the 4.29 percent rate, with an interest-only period of up to 27 months, at application. In addition, the loan carries an earn-out feature that allows the borrower to draw additional loan dollars at stabilization.
Hillcrest Apartments will be located on a 15,200-square-foot parcel at 4021 Eighth Avenue immediately northwest of Balboa Park. Due for completion in early 2016, the property will include one- and two-bedroom floor plans averaging 877 square feet, which will be situated above grade-level parking.
The HFF debt placement team was led by senior managing director Aldon Cole and associate director Bryan Clark.
Veritas Urban Properties was founded to fill a growing need for creative solutions in the urban landscape. The company has development experience that includes more than 1,000 residential units and 60,000 square feet of commercial space and was recognized by San Diego Magazine as one of San Diego’s Next Generation of Civic Leaders. For more information please visit veritasurban.com.
The builder on the project is Murfey Construction, Inc., an expert in commercial and residential mixed-use urban infill general contracting. For more information please visit murfeyconsruction.com.
HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.
Holliday Fenoglio Fowler, L.P., acting by and through Holliday GP Corp., a real estate broker licensed with the California Department of Real Estate, License Number 01385740.