Newport Beach, CA (January 22, 2020) — Buchanan Mortgage Holdings closed a construction loan for The Orchard, a 177,000-square-foot mixed-use residential and retail development located in Azusa, CA. The $55 million loan will be used to build 163 market-rate apartments over 31,700 square feet of retail. The development represents the Serrano Development Group’s second mixed-use development and non-recourse construction loan with Buchanan in the last two years.
The property is a transit-oriented development that will anchor downtown Azusa at the corner of N. Azusa Ave and historic Route 66. The site offers walkable access to the Azusa Pacific and Citrus Colleges, as well as the Downtown Metro Goldline, which is a 45-minute public transit commute to Downtown Los Angeles. The Orchard improvements will be institutional-quality, class-A multifamily improvements comprised in two buildings that will be connected via a second-story footbridge. The project will also have subterranean parking to service the residential units along with class-A finishes in the units.
“We’re excited about the closing of this significant construction facility that allows us to continue our relationship with this borrower. This loan demonstrates our performance in the construction lending market. Buchanan’s ownership background in multifamily provides us a unique perspective and insight to accommodate structured financing requests such as this,” said Joe Maehler, Senior Vice President at Buchanan Street Partners.
The borrower and Buchanan leveraged the success of their first construction financing to develop a larger construction facility that would have similar terms, but also customized to meet The Orchard’s particular requirements.
According to executives with Serrano Development Group, The Orchard in Downtown Azusa marks the second collaboration between Serrano Development Group and Buchanan, both of which are transformative mixed-use projects. One of the main reasons the firm continues to work with Buchanan is because of their approach to complex development issues with thoughtful solutions.
ABOUT BUCHANAN STREET PARTNERS
Buchanan Street Partners is a real estate investment management firm based in Newport Beach, California that focuses on value-investing in both commercial and multifamily direct ownership and in making debt investments. The Buchanan team has invested through multiple real estate cycles, enabling them to identify opportunities and maximize value while prioritizing principal preservation.