Northmarq's San Diego office arranges $18.47M construction financing for mixed-use development in La Mesa

Northmarq’s San Diego Debt + Equity team led by Conor Freeman, Aaron Beck and Wyatt Campbell successfully arranged an $18.47 million construction loan for a 64-unit multifamily development with ground-floor retail in the heart of La Mesa, California. The project is set to deliver high-quality housing and neighborhood-serving retail just steps from La Mesa Boulevard and the city’s walkable village core.

The financing was structured as a 30-month interest-only construction loan, followed by a three-year, mini-perm with flexible prepayment terms. The loan offers a seamless conversion to the mini-perm at certificate of occupancy, with a 200-basis point reduction in rate upon conversion — providing the sponsor with both construction certainty and long-term optionality.

“This financing structure provides the sponsor with a clear runway from construction through stabilization, while capturing a lower cost of capital once the project is delivered,” Freeman said. “It’s a great example of tailoring a loan to the business plan from start to finish.”

The successful closing reflects Northmarq’s ability to deliver customized capital solutions for urban infill development in today’s evolving lending environment.