CHICAGO, IL – JLL Capital Markets announced today it secured a $24.5 million financing for Cielo, a Class A, mid-rise multi-housing property located in Little Italy, San Diego, California.
JLL worked on behalf of the borrower, Built Development, to secure the floating-rate bridge financing through a correspondent life insurance company. In 2014, the sponsor acquired the land, then upon receiving entitlements, broke ground in 2018 and completed the property in January 2021. The loan will be used to pay off the borrower’s existing construction loan and provide cash out.
Cielo totals 63,500 rentable square feet and consists of 70 studio, one- and two-bedroom units. Standing eight stories high, the property features private balconies and terraces, in-unit washers and dryers, stainless steel appliances and modern finishes throughout the units and was built using Type 1 construction. Cielo’s community amenities include a fitness center, bicycle storage and an outdoor rooftop that includes a lounge, kitchen, wet bar and grilling stations.
The property is located at 915 W. Grape St. in the desirable Little Italy neighborhood. Positioned in the heart of Downtown San Diego, Cielo is positioned in between the San Diego Airport, the San Diego Zoo, Waterfront Park and the USS Midway Museum. Additionally, Cielo is walkable to the ocean and various neighborhood amenities, boasting a Walk Score of 95®, and allows direct vehicular access to the I-5 Freeway.
According to JLL’s latest Multi-Housing Outlook, the San Diego market has experienced year-over-year gains in both occupancy and effective rent, despite a slight drop seen in Q2 2020 during the pandemic. The local market recovered almost immediately in Q3, nearly matchingQ1 2020.
The JLL Capital Markets team representing the borrower was led by Managing Director Jeff Sause, Director Christopher Collins and Analyst Chad Morgan.