San Diego, September 21, 2025
News Summary
PSRS arranged a $13.4 million construction loan through a debt fund to finance a nine‑story, 70‑unit micro‑apartment building in San Diego. The nonrecourse facility carries a 75% loan‑to‑cost ratio and a 24‑month term with two six‑month extension options to cover construction and early lease‑up. The development will include 69 studio units and one one‑bed/one‑bath unit, averaging about 360 sq ft per unit. The loan structure is aimed at predictable draw scheduling for ground‑up construction. Observers will watch permitting, vertical construction timing and lease‑up strategy in this transit‑oriented market.
PSRS Arranges $13.4M Construction Loan for 9‑Story, 70‑Unit Micro‑Apartment Project in San Diego
A nine‑story apartment building planned in San Diego has secured $13.4 million in construction financing arranged by PSRS. The project will deliver 70 apartments, of which 69 are studio units and one is a one‑bedroom/one‑bath</b. The development targets a compact living format with an average unit size of about 360 square feet.
Loan and lender details
The financing was provided through a debt fund and was arranged by two PSRS officers. The loan is nonrecourse, carries a loan‑to‑cost (LTC) ratio of 75 percent, and has an initial term of 24 months. The deal includes two six‑month extension options, offering up to an additional year if needed. The structure is typical for short‑term construction financing intended to cover building costs until permanent financing or sales occur.
Project layout and unit mix
The building will rise nine stories and contain mostly studio apartments — a development pattern that emphasizes compact, efficient living spaces. The one bedroom is the only larger unit in the lineup. Average unit sizes near 360 square feet place these apartments in the micro‑apartment category commonly used in dense urban neighborhoods.
Who arranged the loan
The financing was secured by PSRS representatives who worked with the debt fund lender. The loan was placed as a nonrecourse construction loan, meaning repayment is generally limited to the collateral for the loan rather than other borrower assets.
Why this matters
Smaller apartments help add rental options in tight housing markets and can be built more densely on urban plots. A 75 percent LTC indicates the lender is financing a significant portion of the project cost, while the nonrecourse feature limits sponsor liability beyond the project’s assets. The short 24‑month term with extensions aligns with typical construction schedules plus a buffer for lease‑up or permanent financing.
Other regional deals and industry moves — brief notes
– PSRS also arranged other financing deals in the region, including bridge and refinance loans for conversion and multifamily projects.
– A 68.3‑acre nursery site in Oceanside sold for $18 million; the lot is zoned industrial and could host a range of industrial uses.
– A mixed‑use property along North Coast Highway 101 in Encinitas changed hands for $10 million, with plans to convert commercial units from for‑lease to for‑purchase.
– Walker & Dunlop arranged a $34.8 million construction loan for a new affordable apartment project in the Los Angeles area.
– New hires and firm launches include a commercial real estate firm starting to target industrial outdoor storage and a finance chief joining a regional developer.
What comes next
With construction financing in place, the project can move into or continue the build phase, subject to local permits and scheduling. The loan term and extensions provide a clear timetable for construction completion and either lease‑up or a refinance into longer‑term debt.
Contact and permitting
Specific construction start dates, permit milestones and the project timetable were not disclosed with the financing details. Interested parties should check local planning filings and permit records for the most current schedule and site details.
FAQ
What is being financed?
The loan finances the construction of a nine‑story, 70‑unit micro‑apartment building in San Diego.
How many and what types of units will the building have?
The building will have 70 apartments: 69 studios and one one‑bedroom/one‑bath unit. The average unit size is about 360 square feet.
Who provided the loan and what are the key loan terms?
The loan was provided by a debt fund and arranged by PSRS. It is nonrecourse, has a 75% loan‑to‑cost ratio, a 24‑month initial term, and two six‑month extension options.
What does nonrecourse mean in this loan?
Nonrecourse means the lender can look only to the project collateral for repayment if the borrower defaults, not to the borrower’s other assets.
Will the loan cover all construction costs?
The loan covers up to 75% of project cost on a loan‑to‑cost basis. Sponsors typically provide the remaining capital through equity or other financing sources.
{
“@context”: “https://schema.org”,
“@type”: “FAQPage”,
“mainEntity”: [
{
“@type”: “Question”,
“name”: “What is being financed?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The loan finances the construction of a nine‑story, 70‑unit micro‑apartment building in San Diego.”
}
},
{
“@type”: “Question”,
“name”: “How many and what types of units will the building have?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The building will have 70 apartments: 69 studios and one one‑bedroom/one‑bath unit. The average unit size is about 360 square feet.”
}
},
{
“@type”: “Question”,
“name”: “Who provided the loan and what are the key loan terms?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The loan was provided by a debt fund and arranged by PSRS. It is nonrecourse, has a 75% loan‑to‑cost ratio, a 24‑month initial term, and two six‑month extension options.”
}
},
{
“@type”: “Question”,
“name”: “What does nonrecourse mean in this loan?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Nonrecourse means the lender can look only to the project collateral for repayment if the borrower defaults, not to the borrower’s other assets.”
}
},
{
“@type”: “Question”,
“name”: “Will the loan cover all construction costs?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The loan covers up to 75% of project cost on a loan‑to‑cost basis. Sponsors typically provide the remaining capital through equity or other financing sources.”
}
}
]
}
Key project and loan features
| Feature | Detail |
|---|---|
| Project type | Nine‑story micro‑apartment building |
| Unit count | 70 units (69 studios, 1 one‑bed/one‑bath) |
| Average unit size | Approximately 360 sq ft |
| Loan amount | $13.4 million |
| Lender type | Debt fund |
| Loan structure | Nonrecourse construction loan |
| Loan‑to‑cost (LTC) | 75% |
| Term | 24 months with two 6‑month extension options |
| Arranged by | PSRS representatives |
Deeper Dive: News & Info About This Topic
Additional Resources
- REBusiness Online: PSRS Arranges $13.4M Construction Loan for San Diego Micro‑Apartment Project
- Wikipedia: Studio apartment
- REBusiness Online: IDI Logistics Enters Phoenix Market, Buys 101,794 SF Industrial Property for $20M
- Google Search: IDI Logistics Phoenix industrial property
- Bisnow: This Week’s LA Deal Sheet
- Google Scholar: Los Angeles commercial real estate deal sheet
- ConnectCRE: Investment Firm Targets Industrial Outdoor Storage Niche
- Encyclopedia Britannica: industrial outdoor storage (search)
- Bisnow: This Week’s LA Deal Sheet (repeat)
- Google News: This Week’s LA Deal Sheet (Bisnow)
Author: Construction NY News
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at constructionnynews.com, your go-to source for actionable local news and information in New York and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the New York Build Expo, infrastructure breakthroughs, and cutting-edge construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of New York State and the Building Trades Employers' Association, plus leading businesses in construction and real estate that power the local economy such as Turner Construction Company and CMiC Global. As part of the broader network, including constructioncanews.com, constructiontxnews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
