San Diego Developers Land $96M Loan for Target-Anchored, Mixed-Use Project
By Andrew Coen May 10, 2021 2:22 pm
reprints
A joint venture of Cisterra Development, Koman Group and Wermers Companies has nabbed financing for the construction of a mixed-use project that will feature Downtown San Diego’s first Target store, Commercial Observer can first report.
The 60-month loan that closed April 30 for the planned Cisterra 9G development consists of first mortgage and mezzanine debt. Acore Capital provided the financing and CBRE (CBRE), led by Mark McGovern, negotiated the transaction.
Kyle Jeffers, ACORE’s head of western and southwest regions operations, said a 15-year lease recently signed by Target for a 36,000-square-foot store was a big attraction toward advancing the deal.
“The sponsor de-risked the deal significantly by signing that lease prior to closing,” Jeffers said. “That was a big metric from the beginning that we liked a lot.”
Located at 659 9th Avenue in San Diego, the 255,000-square-foot, 22-story building will include 241 multifamily residences. The property’s amenities include a fitness center, game room, wine tasting room, dog park, outdoor theater, cabanas, rooftop pool and jacuzzi.
Officials for Cisterra Development did not immediately respond to a request for comment on the construction loan.
Jeffers noted that the Target store would have grocery options providing a successful synergy with tenants living above the store. He added that the sponsorship team consisting of all San Diego market developers with experience navigating the local zoning process was an added appeal.
“They are local San Diego developers and they know that market inside and out,” Jeffers said. “Not only do we love the deal, and love the Downtown San Diego market and love the Target lease, we think the sponsor in this transaction is A-plus.”
