The Davies Group at Los Angeles-based George Smith Partners, a leading commercial real estate capital markets advisor, secured $56.5 million of construction financing 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 an infill location near the San Diego coast.
Located one block from the beach and the Cedros Design District and proximate to the Solana Beach train station, the two-story development strives for sustainability. It 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.
“It has been a complete team effort to bring this project to life,” said Brad Termini, CEO of Zephyr Partners. “We are excited to see our vision for Solana 101 take a major step forward.”
Solana Beach is a 3.5-square-mile seaside city in San Diego’s North County. Its Cedros Design District consists of more than 85 art galleries, import and antique stores, boutiques and cafes. The Design District is also home to the Solana Beach Farmer’s Market and well-known live-music venue The Belly Up Tavern.
The stretch of Highway 101 running through Solana Beach is peppered with upscale eateries, shops and low-rise office space.
“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.”
Construction is underway for the mixed-use project, with an expected completion date in spring of 2023. Bank OZK (Nasdaq: OZK) and Barings Real Estate provided the financing.
“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. “We appreciate the opportunity to work with the great sponsorship team and participate in this project as the senior secured lender and look forward to a very successful execution.”
Ryan Young, managing director of real estate originations at Barings LLC, added, “We are excited to see this development get underway. We were attracted to the mixed-use nature, strong coastal location and best-in-class sponsorship.”
Davies, along with other Davies Group members, Senior Vice Presidents Zachary Streit and Alexander Rossinsky; Vice President Drew Sandler; Assistant Vice Presidents Aiden Moran and Brandon Asherian; and Analyst Ben Tracy sourced the financing on behalf of the sponsor.
About George Smith Partners
George Smith Partners is a leading national provider of capital market advisory services to the commercial real estate industry. The firm specializes in arranging financing for commercial and multifamily properties, including acquisition, construction, bridge and permanent loans, as well as mezzanine loans, highly leveraged participating loans and joint venture equity. The company has arranged more than $58 billion in financing since its inception. Additional information about George Smith Partners is available at www.GSPartners.com.
About Barings
Barings LLC is a $326 billion* global investment manager sourcing differentiated opportunities and building long-term portfolios across public and private fixed income, real estate and specialist equity markets. With investment professionals based in North America, Europe and Asia Pacific, the firm, a subsidiary of MassMutual, aims to serve its clients, communities and employees, and is committed to sustainable practices and responsible investment.
*Assets under management as of March 31, 2021
About Bank OZK
Bank OZK (Nasdaq: OZK), through its Real Estate Specialties Group (RESG), provides senior-secured financing on marquee commercial real estate construction projects throughout the nation. RESG is considered a preeminent, market-leading construction lender changing skylines across the United States. For more information visit www.ozk.com.