DTSD Could See More Large Financings

Dick: “We will see more and more large, mixed-use projects being financed and developed in Downtown San Diego.”

SAN DIEGO—A $135-million financing for a 45-story apartment tower Downtown shows that lenders are seeing renters as more-stable and permanent residents than condo owners who often use their assets as second homes, Kidder Mathews’ SVP, debt and equity finance, Jamie Dick tells GlobeSt.com. As we recently reported, Dick and loan analyst Jay Dick arranged financing in the amount of $135 million for the borrower and developer—whom GlobeSt.com has learned is owner Pinnacle International—of Pinnacle on the Park, Phase I, a 484-unit, 45-story apartment tower in Downtown’s East Village neighborhood. The purpose of the loan, we have learned, was to retire the original construction loan that was used to build the tower.

We spoke exclusively with about lenders’ sentiment toward the East Village apartment market, whether we will be seeing more financings of this size in this market and other financing trends he is noticing in this submarket.