Little Italy’s Cielo Multifamily Benefits from Payoff and Cash Out
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 in second quarter 2020 during the pandemic. The local market recovered almost immediately in third quarter, nearly matching first quarter 2020.
An example of this market resilience is Cielo, a multifamily property located in San Diego’s Little Italy. In 2014, its developer acquired the land, then upon receiving entitlements, broke ground in 2018 and completed the property in January 2021. The class-A mid-rise property recently received a $24.5 million loan which will be used to pay off the borrower’s existing construction loan and provide cash out.
Cielo totals 63,500 rentable square feet within eight stories and consists of 70 studio, one- and two-bedroom units. The property is located at 915 W. Grape St. between the San Diego Airport, the San Diego Zoo, Waterfront Park and the USS Midway Museum. Additionally, Cielo has access to the I-5 Freeway and is within walking distance to the ocean.
JLL worked on behalf of the borrower, Built Development, to secure the floating-rate bridge financing through a correspondent life insurance company. The JLL team representing the borrower was led by Jeff Sause, Christopher Collins and Chad Morgan.
- ◦Financing