A $69.75 million loan was recently secured by JPI Pacific Beach, a multifamily property located in the Pacific Beach submarket of San Diego. The loan was made to JPI Companies and will replace the existing construction debt after the property received its final certificate of occupancy in July 2020.

JPI Companies was attracted to the site because it was one of the only developable parcels with critical mass in Pacific Beach, and no institutional-quality apartments had been constructed in the submarket in the past 40 years.

The financing will be a bridge to stabilization and was arranged by Scott Peterson of CBRE’s San Diego office. Square Mile Capital Management LLC originated the loan.

“This transaction was a compelling opportunity to finance a trophy-quality multifamily asset in a submarket with significant barriers to entry,” says Tom Burns, Square Mile Capital principal. “It also helps us to continue building a strong lending relationship with the JPI Companies and CBRE. The property will continue to benefit from its significant lifestyle advantages situated at the gateway to San Diego’s Mission Bay Park and from being directly off Interstate 5, providing renters the ability to get to both Downtown San Diego and University Town Center.”

JPI Pacific Beach is a recently delivered 172-unit three-story multifamily asset located along Mission Bay Drive and adjacent to Interstate 5, located less than 10 minutes from downtown San Diego. The property is 86.6 percent leased.