Walker & Dunlop Lends $81M Toward SoCal Apartments

A Southern California-based developer has landed an eight-figure refinancing package toward one of its multifamily properties in the greater San Diego area, illustrating the fiercely strong investor sentiment around housing in the region. 

Baldwin & Sons, based in Newport Beach, Calif., has secured $81 million from Walker & Dunlop Investment Partners (WDIP) toward Enclave Heritage Flats, a 312-unit housing complex in Chula Vista, about 16 miles southeast of Downtown San Diego. The apartments, at 1800 Santa Carolina Road, feature one-, two- and three-bedroom units, along with a fitness center, a pool and a movie theater. 

A Walker & Dunlop capital markets team led by Gregory Richardson arranged the deal on behalf of Baldwin & Sons. WDIP’s Andrew Yaroma, Kimberly Schmitz and Terri Magnani led the limited-recourse — in which the borrower’s liability is restricted to the specific asset, in case of default — floating-rate financing.

“We are seeing floating-rate debt gain popularity as [the Secured Overnight Financing Rate] decreases and the appetite from debt funds and life companies continues to grow,” Richardson said in a statement. 

Baldwin & Sons’ loan isn’t the only piece of multifamily news in San Diego so far this month. Commercial Observer learned this week that a joint venture involving architect Jeff Svitak, developer Jeremy Ricks and Cast Development landed a $29.8 million construction loan toward its 78-unit, eight-story apartment development in San Diego’s Bunker Hill neighborhood. Lightstone Capital provided the debt. 

Greystar, meanwhile, earlier this month sold a 718-unit residential plaza — including a 35-story tower — adjacent to the San Diego Padre’s baseball park to MG Properties for $309 million. The deal was the third largest in the city’s history, and the largest there since 2020, MG Properties said at the time. 

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