HFF Secures $7.5 Million for Hillcrest M-F Project

A residential project located in San Diego’s Hillcrest neighborhood recently received a massive boost as developer Hillcrest Veritas, LP received $7.46 million in construction-permanent financing. HFF worked on behalf of the developer to secure the financing, a 71 percent loan-to-cost, 12-year, fixed rate construction-permanent loan through a correspondent life company lender.

A residential project in San Diego’s Hillcrest neighborhood recently received a major boost as developer Hillcrest Veritas L.P. secured $7.46 million in construction and permanent financing. HFF arranged the 12-year, fixed-rate loan, which is being provided by a correspondent life insurance company.

Located northwest of Balboa Park at 4021 Eighth Ave., Hillcrest Apartments will occupy a 15,200-square-foot site. The 36-unit, five-story project will offer residential units averaging 877 square feet of space. The community will offer one- and two-bedroom units, as well as above-grade parking. Hillcrest Apartments is currently due for completion in 2016.

The borrower locked in a 4.29 percent rate, with an interest-only period of up to 27 months. At stabilization, the 71 percent loan-to-cost financing will convert to a permanent loan. An earn-out feature allows the borrower to draw additional funds upon stabilization. The HFF team consisted of Senior Managing Director Aldon Cole and Associate Director Bryan Clark.

Hillcrest Veritas’ experience includes more than 1,000 residential units and 60,000 square feet of commercial space. Murfey Construction Inc. , which specializes in commercial and residential mixed-use urban infill projects, serves as general contractor.