Two-Story Mixed-Use Will Be 101’s Largest in 30 Years

When completed in spring 2023, a two-story development in Solana Beach will be the largest mixed-use project along Highway 101 in the past three decades, offering a large office floorplate that is unique for the area. Construction financing of $56.5 million was obtained on behalf of Zephyr Partners for its project comprising 55,000 square feet of office space, 9,000 square feet of retail/food and beverage space, and 25 apartment units at this infill location near the San Diego coast.

Bank OZK and Barings Real Estate provided the financing. The Davies Group at Los Angeles-based George Smith Partners secured the loan.

“This project responds to specific demands in the area, so in a time of market volatility and economic uncertainty, we were able to identify capital providers who understood the value of all three components of the development,” said Malcom Davies, principal and managing director at George Smith Partners. “The lenders also recognized the proven ability of this sponsor to execute on its business plans.”

Davies, along with other Davies Group members, Zachary Streit, Alexander Rossinsky, Drew Sandler, Aiden Moran, Brandon Asherian and Ben Tracy sourced the financing on behalf of the sponsor.

“This project represents a unique opportunity to develop a class-A mixed-use project in an exceptional location that will be well positioned to meet post-pandemic tenant requirements,” said Aram Zakian, executive vice president of originations for Bank OZK’s real estate specialties group.