Gaslamp District Building Draws Red Oak’s Attention, Financing

Walkability and proximity to a cultural-and-entertainment scene are notable features of San Diego’s Gaslamp District. Those features generate foot traffic. 

Real estate financing company Red Oak Capital Holdings recently arranged $13.75 million in financing for a four-story, office-over-retail building in the district. The 23,500-square-foot property was vacant with the exception of an existing ground floor restaurant, according to a news release.

Hoping to deliver in six to nine months on its plans, Red Oak envisions that the upper three floors of the building can be converted to 27 micro, high-end residential units – averaging 336 square feet per unit. 

At ground level, the 7,128-square-foot restaurant will be renovated, with the present occupant planning to stay at the location. Additionally, the basement will be available for rent as either storage or back office for the restaurant. 

The property financed by Red Oak has continued to increase in value since it was acquired by the Borrower for $8,200,000 in 2019.