Builders Capital, Nuveen Lend $27M on SoCal Condo Project
By Andrew Coen January 19, 2024 1:21 pm
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Southern California developer Westerre has nabbed $26.8 million of construction financing to build a condominium development between Los Angeles and San Diego, Commercial Observer has learned.
Builders Capital supplied a $17 million senior loan for the developer’s planned Del Prado Place project in Dana Point, Calif., while Nuveen also provided a $9.8 million Commercial Property Assessed Clean Energy (C-PACE) loan for the 18-unit condo building.
Concord Summit Capital Director Tyler Beauregard, who arranged the financing, said the deal marks its second transaction with Westerre involving the combination of a senior construction loan and C-PACE debt.
“While this dual-loan execution can be very challenging and complex, incorporating C-PACE into the capital stack allowed us to provide our sponsor with the lowest possible cost of capital along with significantly higher proceeds than a traditional stretch senior construction loan,” Beauregard said in a statement.
Located at 34137 Pacific Coast Highway in Dana Point’s Lantern District, the project will feature one- and two-bedroom condos with unit prices starting at $1.75 million. The property will also house 5,200 square feet of ground-floor retail.
Construction is slated to begin in early 2024 with completion expected in the second quarter of 2025.
“The complex financial engineering of this project was made possible by Builders Capital in partnership with PACE financing,” John Bohannon, senior loan officer at Builders Capital, said in a statement.
Officials at Nuveen and Westerre did not immediately return requests for comment.
Andrew Coen can be reached at acoen@commercialobserver.com
