Acore Leads $112M Financing for San Diego Affordable Housing Project
The affordable housing project, dubbed Mission Gorge, will feature 483 units
By Nick Trombola December 20, 2024 3:21 pm
reprintsSome major real estate deals have gone down in the San Diego region this year, with a new nine-figure construction financing package for an affordable housing project as just the latest example.
Los Angeles-based developer Impact Housing and partner Verbena Road Holdings have secured $112.2 million in financing for Mission Gorge, an unsubsidized, 483-unit modular affordable housing development at 6171 Mission Gorge Road, about four miles northwest of San Diego State University.
Acore Capital provided an $85.2 million floating-rate, senior construction loan, while Ascendent Capital Partners provided a $27 million preferred equity investment. JLL Capital Markets’ Charles Halladay, Joseph Choi and Will Bond arranged the debt, representing the borrowers.
“Mission Gorge represents an innovative solution to address San Diego’s housing needs,” Halladay said in a statement. “The combination of Impact Housing’s efficient modular construction process and the project’s naturally affordable rents make this a compelling investment opportunity in a high-demand submarket.”
Rent prices at Mission Gorge will be roughly 20 percent lower than the area’s market rate, and the apartments are geared toward low-income tenants earning at or below 80 percent of the area median income, per JLL.
“[The project] offers an ideal mix of density across highly efficient studio and one-bedroom units, in a fantastic location at an attainable price point for tenants,” added Scott Swisher, managing director and head of Western region originations for Acore.
Aside from some of the largest single-asset sales in California this year, San Diego also saw a number of other high-dollar financing deals in 2024. Sumitomo Mitsui Banking Corporation, for example, in October provided a $90 million refinancing loan to Phase 3 Real Estate Partners’ life sciences portfolio in the region and in Boston. Or there’s Goldman Sachs, which in May provided an $82.5 million refinancing loan toward Sunroad Enterprises’ 11-story office tower in central San Diego.
Nick Trombola can be reached at ntrombola@commercialobserver.com.