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 multifamily project in San Diego secured $13.4 million in construction financing arranged by PSRS. The loan is provided through a debt fund, is nonrecourse, and was secured by Trevan Swierczewski and Alexander Santulis of PSRS. The financing carries a loan‑to‑cost (LTC) ratio of 75 percent and a 24‑month term with two six‑month extension options.
Project basics and unit mix
The building will total 70 apartments, with 69 studio units and one one‑bedroom/one‑bath unit. The average unit size is about 360 square feet, placing the development firmly in the micro‑apartment category. Construction financing is intended to carry the project through the building phase.
Loan structure and terms
The loan was structured as a construction facility through a debt fund, commonly used for ground‑up projects that need predictable draw schedules. The nonrecourse nature of the loan means the lender’s recovery is limited to the project collateral rather than the borrowers’ broader corporate balance sheet. A 75 percent LTC indicates the loan covers a large portion of the projected construction cost, while leaving room for developer equity or other capital sources. The 24‑month term plus two six‑month extension options provides flexibility if construction or lease‑up timelines shift.
Why micro‑apartments?
Micro‑apartments are typically aimed at renters seeking lower cost, centrally located units or short‑term urban living. Units averaging around 360 square feet are designed to maximize usable living space and often include efficient layouts and shared amenities to offset the smaller private footprint.
Local market context and related deals
The San Diego area and broader Southern California market continue to see diverse activity across property types. Nearby transactions and moves that highlight this variety include:
- A 68.3‑acre nursery in Oceanside sold for $18 million to Lehi Property Development; the site is zoned industrial and may support future industrial projects.
- The Lofts at Moonlight Beach, a mixed‑use property in Encinitas with 13 commercial units, traded for $10 million and will shift from for‑lease to for‑purchase units under the new owner.
- A 2.3‑acre site in Covina was acquired for $8 million for a planned 180,000‑square‑foot self‑storage facility.
On the financing side, PSRS teams have also been active on other West Coast deals, including bridge financing and refinances for multifamily and adaptive‑reuse projects, and other lenders are arranging construction funding for affordable housing projects in the region.
Industry moves and strategy signals
The region is also seeing corporate and strategic shifts: hires in finance leadership at a residential owner, brokerage talent moving between firms, a construction management firm merging with a national consultant, and a new firm focusing on industrial outdoor storage launching in San Diego. These moves reflect continued investor interest in a range of property types from multifamily and industrial to seniors housing and niche outdoor storage.
What to watch next
Key milestones to monitor for this San Diego project include permitting progress, construction start date, timing of vertical construction, and whether the lender and borrower use the available extension options. Lease‑up strategy will also be important for a micro‑apartment product that relies on rapid absorption in walkable or transit‑oriented areas.
Bottom line
The arranged $13.4 million construction loan provides the capital framework for a nine‑story, 70‑unit micro‑apartment building in San Diego. The nonrecourse financing, 75 percent LTC and 24‑month term with extensions are structured to support construction and early lease‑up for a compact unit mix focused on studio living.
FAQ
What is being financed?
The construction of a nine‑story building in San Diego with 70 apartments, primarily studios.
How much is the loan and who arranged it?
A $13.4 million construction loan arranged by PSRS and secured by Trevan Swierczewski and Alexander Santulis.
Who is providing the loan?
The financing is provided through a debt fund.
What are the key loan terms?
The loan is nonrecourse, has a 75 percent LTC, a 24‑month term and two six‑month extension options.
What is the unit mix and size?
70 total units: 69 studios and one one‑bedroom/one‑bath unit. The average unit size is about 360 square feet.
What does nonrecourse mean?
Nonrecourse financing limits the lender’s recovery to the project collateral and generally does not allow claims on the borrower’s other assets.
How does this loan fit local market trends?
It reflects continued financing activity for urban multifamily projects and growing interest in compact, lower‑cost living options in dense markets.
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Key Project and Loan Features
| Feature | Detail |
|---|---|
| Loan amount | $13.4 million |
| Loan provider type | Debt fund |
| Arrangers | PSRS (Trevan Swierczewski, Alexander Santulis) |
| Loan type | Construction loan, nonrecourse |
| Loan‑to‑cost (LTC) | 75% |
| Term | 24 months (+ two 6‑month extensions) |
| Building height | Nine stories |
| Total units | 70 units |
| Unit mix | 69 studios, 1 one‑bed/one‑bath |
| Average unit size | Approximately 360 sq ft |
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 FL News
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