Holliday Fenoglio Fowler arranged $12.731 million in construction financing for the development of Driftwood, a to-be-built, Class A mixed-use building with 81 luxury multi-housing units and 3,137 square feet of retail in San Diego’s Point Loma/Midway district.
Working on behalf of the developer, K&K Veritas LP, an affiliate of Veritas Urban Properties and Bishop & Company, with construction provided by Murfey Construction, HFF placed the two-year construction loan with Pacific Western Bank.
Driftwood will be situated on a two-acre lot at the corner of Kemper and Kenyon in San Diego’s Point Loma/Midway district, a thriving commercial and residential district. The site is currently an empty lot adjacent to the new $18 million West City community college campus, and two major outpatient healthcare facilities, Sharp Healthcare and Kaiser Permanente, are in the vicinity.
Two grocers, a 24-Hour Fitness, Target, Home Depot and Dick’s Sporting Goods are within walking distance from the property, which is two miles from the Liberty Station master-planned community and Ocean Beach. Once completed, Driftwood will consist of stacked flats within a three-story, elevator-serviced building with interior common hallways and stairwells.
Units will feature a full stainless steel appliance package, soft-close drawers, granite or quartz countertops with undermount sinks, stained concrete or ceramic tile floors and carpet in the bedrooms, and most units will have private balconies. Community amenities include a communal courtyard with hot tub, barbeques, lounge areas and on-grade parking with 109 stalls.
The HFF debt placement team was led by senior managing director Aldon Cole, director Bryan Clark and associate director Chris Collins.
“The HFF team went above and beyond to scour the capital markets to provide the best possible solutions for our unique project,” said Russell C. Murfey, principal at Veritas Urban Properties. “The end result was an attractive debt and equity project that allowed us to bring our vision to fruition.”
“Pacific Western recognized that Veritas had identified and controlled a unique, coastal, infill site and had put together a well thought out development plan, which will greatly enhance the midway corridor,” Cole added. “They provided exceptional service and aggressive terms in a difficult environment for obtaining construction loans.”
Veritas Urban Properties was founded to fill a growing need for creative solutions in the urban landscape. With a long history in multi-family and commercial, design and construction has been a passion for many years. K&K Veritas LP is a joint venture between Veritas Urban Properties and Bishop & Company, with construction provided by Murfey Construction.