Limekiln Provides $43M Construction Loan

Financing for Elements Apartments in Santa Maria picks back up after construction stalled

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The Vernon Group, a Santa Barbara-based real estate investment and development firm, has secured $42.7 million in takeout construction financing for Elements Apartments, a six-building, 167-unit multifamily community in Santa Maria, Calif., northwest of Los Angeles 

Limekiln Real Estate Investment Management — a subsidiary of MF1 Capital — provided the construction loan. JLL (JLL) Capital MarketsMatt Stewart, Alex Olson, Chad Morgan and Jacob Michael arranged the financing.

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“The Vernon Group has solidified itself as one of the premier developers along the central coast of California and, as such, we were able to advise them on a bespoke financing solution that achieved all of their objectives,” said Stewart in a statement.

While construction on Elements Apartments began in summer 2021, the project stood at only 80 percent complete at the time of the Limekiln loan closing. Completion and securing the full certificate of occupancy is expected to occur by January 2024, according to JLL.  

Thorofare Capital provided the initial $34.8 million construction financing to develop the property, which originally had a summer 2023 completion date, according to the firm’s website.

The original plan of Elements Apartments featured one-, two- and three-bedroom units in two- and three-story buildings, according to Thorofare’s website. Amenities are to include a community room, a bicycle room, a dog wash station, a fitness center, an outdoor community deck and a hot tub.

It is not clear why construction stalled or whether Thorofare Capital is still involved in the project. Neither Thorofare Capital nor The Vernon Group responded to requests for comment. 

Founded in 2000, The Vernon Group specializes in developing apartment communities in coastal California. The firm owns or operates more than 500 multifamily units and holds more than $300 million in assets. 

Brian Pascus can be reached at bpascus@commercialobserver.com