PSRS Arranges $13.4M Construction Loan for San Diego Micro‑Apartment Project

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 Nine‑Story, 70‑Unit Micro‑Apartment Project in San Diego

A nine‑story apartment building in San Diego has secured a $13.4 million construction loan to move forward. The project will contain 70 units, made up of 69 studio apartments and a single one‑bedroom/one‑bath unit, with an average unit size of about 360 square feet. The financing was provided by a debt fund and was arranged by two brokers from PSRS.

Key financing terms at a glance

The loan is nonrecourse, covering roughly 75 percent of the project’s cost on a loan‑to‑cost (LTC) basis. The stated loan term is 24 months and includes two six‑month extension options, which could allow for up to three years of financing if the extensions are exercised. The arrangement was secured by Trevan Swierczewski and Alexander Santulis of PSRS.

What the unit mix and size imply

With 69 studios and one one‑bedroom unit, the development is designed around the micro‑apartment model, focusing on compact, efficient living spaces. An average unit of about 360 square feet places these apartments in the smaller end of typical urban rental stock, a format that tends to appeal to singles, young professionals, and tenants seeking lower‑cost options near jobs and transit.

Why the loan structure matters

A nonrecourse loan means lenders have limited claim on the borrower beyond the property itself, which is common in construction and commercial real estate deals where sponsors want to limit personal exposure. A 75% LTC indicates the lender is financing most of the project cost, leaving the sponsor responsible for the remaining 25 percent of costs, which typically includes equity and some closing costs. The 24‑month term with two six‑month extensions offers flexibility for construction schedules and permitting delays without forcing an immediate refinance or sale.

Context within the local market and lender activity

The deal adds to an active run of construction and bridge financing in the region. The same brokerage group has been involved in other recent transactions covering conversions and new development loans in the area. Locally and nationally, debt funds continue to be a common source of construction capital, particularly for projects with clear unit plans and experienced development teams.

What comes next

The loan gives the project the funding needed to advance construction planning and ground work. While a specific construction start or delivery date was not disclosed, the term and extensions on the loan suggest the financing is intended to cover the full build cycle and any routine delays that can occur during construction and lease‑up.

Broader development trends

Smaller units clustered in taller, denser buildings have become a frequent response to rising housing demand and limited land supply in coastal cities. Micro‑apartment projects often aim to increase the number of available rental units on constrained sites while keeping per‑unit development costs manageable. These developments can help add housing supply, particularly for households that prefer or need smaller footprints.

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Key project features

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
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• Google Search: IDI Logistics Phoenix industrial property
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Author: Construction CA News

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