INDIO, CA-Developer Northgate Crossing LLC has obtained a $26.5 million land development loan for its Northgate Crossing retail project here, and Carson Self Storage has lined up $15.5 million in joint venture equity in two recent transactions demonstrating that financing deals are still being closed despite the disarray in the capital markets. The two were separate, unreleated deals: The Northgate financing was arranged by Los Angeles-based Highland Realty Capital on behalf of Northgate Crossing LLC; the joint venture funding in Carson was arranged by NorthMarq Capital.

According to the web site for the Northgate project, the 80-acre site will include a total of more than 350,000 sf of retail space, restaurants and showroom space as well as 247 multifamily units, 118 single-family residences and a 100-room hotel. According to Brad Sevier of Highland Realty, the $26.5 million in financing for the project was funded by a regional bank that “was able to get comfortable with a business plan involving land pad presales and bond proceeds from a community facilities district paying down a substantial portion of the development loan once public work improvements are completed.”

Sevier notes that the borrower “is a strong sponsor with substantial commercial real estate experience and an excellent reputation with local municipalities.” One of the principals of Northgate Crossing is P. Thomas Mann, who has developed more than 17 million sf of office, retail, residential and industrial projects over the last 27 years in 15 states.

“The bank took the time to fully evaluate the business plan and understand all of the positive aspects of the development and sponsorship,” Sevier says. Northgate Crossing is entitled for commercial, hospitality and residential uses and located within an Enterprise Zone, allowing employers to obtain state tax credits. The project has significant frontage along Jefferson Street, the primary north-south arterial in Indio that leads to LA Quinta’s high-end resort communities, such as PGA West.

In the Carson transaction, the $15.5 million in joint venture equity went to a 1,009-unit, 103,203-sf self-storage facility that was “in desperate need of capital,” according to senior vice president and managing director Daniel McCarthy of NorthMarq’s Los Angeles regional office. McCarthy and David Blum, a vice president with NorthMarq in Los Angeles, arranged the financing.

McCarthy says that after years of poor financing terms the JV partner recapitalized the property and is providing expertise in self-storage to get the project leased up to stabilization. Without the JV equity arrangement, the property would have gone into foreclosure with no options available for the borrower, NorthMarq says.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information

GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.