Core Development Lands $41M for Multifamily Conversion in Orange County

The developer behind an office-to-multifamily conversion in Orange County, Calif., has landed an eight-figure construction loan to help bring the project to life. 

Philip Rahimzadeh’s Core Development Group secured $41 million toward 2700 Main, an in-the-works, 158-unit multifamily building named after its address at 2700 North Main Street in Santa Ana. Israel Discount Bank provided the floating-rate, interest-only loan, a person familiar with the deal told Commercial Observer. 

Located just south of Santa Ana’s MainPlace Mall, the 3.5-acre property currently contains a vacant 12-story office building and a surface parking lot. Core Development purchased the property — previously occupied by tenants such as Wells Fargo — in early 2024 for $18.6 million. Alongside the new multifamily units, the developer plans to add 7,750 square feet of ground-floor commercial space. 

A Walker & Dunlop capital markets team, led by Steven Paskover, arranged the debt on behalf of the borrower. 

“This financing allows for the conversion of an underutilized office asset into much-needed Class A housing in the heart of Santa Ana,” Paskover said in a statement. “With its prime location, sweeping views and exceptional design, 2700 Main is set to become a premier residential community within one of Orange County’s most vibrant and evolving corridors.”

Multifamily development in Orange County is among the rarest of all Southern California markets, and the dearth of projects there has made the county both the tightest and most expensive rental market in the region. Average monthly rents in Orange County hit $2,776 this year, according to a recent report from the University of Southern California, and only about 1,500 new units were delivered in the past 12 months — less than 0.5 percent of the county’s entire stock. 

Nick Trombola can be reached at ntrombola@commercialobserver.com.