Sunroad Enterprises has received a $203 million construction take-out loan for Vive Luxe, a 442-unit lifestyle community in San Diego. The five-year bridge loan concludes the final capitalization of the recently completed infill development in the metro’s Kearny Mesa submarket. JLL secured the loan on behalf of the borrower.

The developer broke ground on the project after it received a $145 million loan from Pacific Coast Capital Partners at the beginning of 2019, San Diego Business Journal reported. Located at 4890 Sunroad Centrum Lane, the community is near the 11-story Centrum office building, which the company developed in 2008 as part of its redevelopment of a former General Dynamics complex. Vive Luxe is the final phase of the master redevelopment project, which had been in the works for nearly two decades.

Kearny Mesa: Investment, Development Hotspot

Initially, Sunroad planned to build two more office buildings on the Vive Luxe site; however, the company changed strategies as demand for apartments outpaced the need for office space. The need for housing is driven by an explosion of jobs near the Kearny Mesa submarket and its proximity to major life science hubs in Sorrento Mesa and University Town Center.

Both developers and investors favor the submarket. According to a Yardi Matrix report from the end of last year, the Kearny Mesa neighborhood had the second-largest development pipeline marketwide after Central San Diego, with 1,617 units under construction. The submarket's investment volume was also notable, with transactions reaching $307 million at the end of 2021, outpaced only by Escondido ($308 million) and El Cajon ($338 million).