Newport Beach, Calif. (December 11, 2017) – Buchanan Street Partners closed on a $20.8 million construction loan for Newhall Crossings, a mixed-use project with 47 apartment units and 20,164 SF of retail space in Santa Clarita, California. The project will anchor a significant redevelopment in historic Old Town Newhall, a walkable downtown district with plentiful dining and shopping opportunities in burgeoning Santa Clarita Valley.
“Santa Clarita Valley’s economy is markedly active and is built upon a solid business infrastructure. Newhall is truly coming into its own as a suburban market yet with a ‘new urban’ look and feel in its downtown area,” said Matthew Doerr, vice president at Buchanan Street Partners.
“Millennial demographic trends point to increasing demand for an urban lifestyle in a suburban location, and given its proximity to the Newhall Metrolink Station, we think Old Town Newhall is poised to capitalize on that opportunity,” added Doerr.
Newhall Crossings will be the northern anchor of the premier pedestrian oriented commercial corridor in Santa Clarita, with access to over 50 shops, restaurants and entertainment venues, and is served by a nearby Metrolink station. The project is part of a larger adjacent development that includes a seven-screen Laemmle Theatre, a portion that will be completed within the same timeframe as Newhall Crossings. The adjacent development also includes a 5-story parking garage scheduled for completion in the spring of 2018.
The city of Santa Clarita has experienced tremendous growth in previous years, including an increase in employment in business, industrial, hospitality and retail services.
“In addition to the area’s significant path of growth, experienced sponsorship, a walkable community and easy access to public transit were strong factors influencing our decision to finance Newhall Crossings,” added Doerr.
Buchanan Street provided a 77% loan-to-cost, non-recourse construction loan for Newhall Crossings. The firm provides first mortgage capital and structured financing for commercial properties in the Western United States, with a focus on bridge and construction loans in the $5 million to $25 million range.
Brian Halpern and Alex Kane at Jones Lang LaSalle arranged the financing for Buchanan Street. No further loan terms were reported.
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 company is comprised of a highly skilled team that has invested through multiple real estate cycles, enabling them to identify opportunities and maximize value while prioritizing principal preservation. www.www.buchananstreet.com.