Northmarq secures $66M in construction financing for Palm & Hollister Apartments in San Diego

SAN DIEGO — Northmarq’s San Diego Debt + Equity team, led by Aaron Beck, Bryce Quezada, Conor Freeman and Wyatt Campbell arranged the $66.15 million construction loan for Palm & Hollister Apartments, a proposed 198-unit garden-style multifamily community located at 555 Hollister St. in San Diego.

Northmarq arranged the financing on behalf of the borrower, Ambient Communities, through its relationship with Genesis Capital. The transaction was structured with a three-year initial term and includes the option to roll into a mini perm upon completion of construction.

“This was a very competitive process, with multiple quotes received. Genesis Capital ultimately won the business by providing up to 75% loan-to-cost and structuring a few key terms for the borrower, including the deferral of equity at an attractive interest rate,” said Beck. “The loan was also negotiated on the borrower’s behalf to allow them to take advantage of the declining short-term interest rate environment. This was a seamless execution between Genesis and Ambient Communities, resulting in a closing in approximately 60 days.”

This project will deliver high-quality, naturally affordable housing to the growing South Bay San Diego community, which continues to expand alongside numerous recent and planned developments. Located adjacent to the Palm Avenue MTS Trolley Station, just one block from the Interstate 5 freeway and overlooking the Otay River Valley, the property will provide residents with San Diego Bay and territorial views as well as convenient access to key employment centers throughout the region.