Calmwater Capital has provided San Diego-based Greenline Development Group with a $16.55 million construction loan on a 69-unit multifamily property in the Hillcrest neighborhood of San Diego, CA.
“We were able to step in after the original lender pulled out of the deal within a week of the scheduled close and were able to get this across the finish line in 29 days,” said Calmwater Director Zach Novatt, who heads the firm’s originations efforts in the Western United States.
Traditional lenders, most notably regional banks, who have been the primary source for construction lending have pulled back significantly. According to MSCR Real Estate Capital Analytics, construction financing dropped 38 percent in 2023.
“We see an opportunity to fill that void, especially on fundamentally sound projects with strong sponsorship and the Greenline project was an example of just that,” Novatt added.
The financing was arranged by Jason Moyal, managing director of Beverly Hills, CA-based MBP.
“We needed to pick up the pieces quickly, and Calmwater offered us certainty of execution on a very short fuse,” said Moyal. “Given our history of executed loans in the San Diego market, we were able to effectively address the deal’s conceivable challenges and facilitate a closing in less than 30 days.”
When completed in the second quarter of 2026, the seven-story building at 3729 10th Ave will feature a mix of studio, one-, and two-bedroom units. Five of the units will be restricted as “affordable.” All apartment homes will feature in-unit washer and dryer, stainless steel appliances, quartz countertops, and laminate flooring. Common area amenities will include a rooftop terrace and a ground floor tenant lounge and coworking space.
The property is located within the Hillcrest submarket of San Diego, three miles north of downtown. A vibrant uptown neighborhood, walkable to area bars, restaurants, boutiques and shops on Fifth Avenue, Hillcrest has become of the densest populations of residents aged 25- 34 in San Diego with 70% of them renters, according to CoStar.
“Many lenders and investors, especially those out of state, mistakenly, and to their detriment, view the regulatory environment in California as a whole,” said Calmwater Managing Principal Larry Grantham. “With our roots in the state, we understand how the policy framework in California differs from market to market and even submarket to submarket. Market fundamentals clearly supported the need for new quality product in a business-friendly city like San Diego.”
This is Greenline’s second project under development in the San Diego market with two more sites currently going through the entitlement process.
“We look forward to building our relationship with Greenline as they continue to work through their development pipeline,” Novatt added.
Calmwater Capital is a commercial real estate debt lender specializing in senior secured bridge and transitional loans. With offices in both Los Angeles and New York city metros, Calmwater provides certainty of execution and individualized attention to our borrowers nationwide. Founded in 2010, Calmwater has grown to attract institutional investors both domestically and internationally. Calmwater Capital has originated nearly $4 billion in loans across 247 transactions since 2010. For more information on Calmwater Capital, visit www.calmwatercapital.com.
