Zephyr Secures Financing to Build SD's Most Expensive Condo Units Ever

With a kitty of pre-sales at pro forma pricing, Zephyr Partners got a cool $40M in financing to start construction on its Bankers Hill condo project. But that financing wasn't without its struggles since Zephyr is seeking one of the highest per SF selling prices in San Diego history, says George Smith Partners' Malcolm Davies, who secured the money with an unidentified group. “The biggest obstacle in securing the additional equity financing for this project was the projected per-square-foot sale price of the completed units,” Malcolm says. “No other project in San Diego has ever been priced above $1k/SF, and The Park’s projected pricing is just above this benchmark.”

Zephyr, with its partner LLJ Ventures, began site development in 2013 in the affluent Bankers Hill community on The Park, a 13-story, 60-unit project. Officials say Zephyr already has a dozen "initial deposits" on units (ranging from less than 1,600 to more than 4k SF) that start at $1.5M. The site is at 2850 6th Ave, where Zephyr razed a 65k SF medical office building to make way for the project.

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