The Festival Companies has received a $31 million refinancing for Boardwalk at Sorrento Court, a 50,000-square-foot shopping center in San Diego. The Solana Beach, California, office of Meridian Capital Group arranged the loan.
The 24-month loan was provided by a “balance-sheet lender” and features a floating-rate, full-term, interest-only payments and an allocation for future funding, according to a Meridian spokesperson.
The planned renovation of the center includes what Meridian describes as a “modernizing” and “repositioning” of the free-standing, 17,000-square-foot anchor building currently occupied by Staples. The office-supplies retailer plans to vacate the space in the near future, and the owner, the Festival Companies, said it plans to reposition the building for multiple restaurant users.
The redesign of the anchor building includes converting the structure into a “contemporary, fast-casual food and dining destination” with five or six food-and-beverage tenants, according to Meridian. The new restaurant spaces would include ample outdoor patios, while the center’s signature boardwalk would surround and provide pedestrian connections between the future tenants.
Existing tenants in the in-line portion of the Boardwalk at Sorrento Court include Bank of America, Chase, Starbucks, and Which Wich. All tenants will remain in place during the renovation.
Seth Grossman, a Meridian Senior Managing Director, and Andy Strauss, an associate, negotiated the financing on behalf of The Festival Companies. Both men work out of Meridian’s Solana Beach office.
Located in Sorrento Valley, the shopping center is “phenomenally located” less than a mile from Interstate 805, according to Grossman. The Sorrento area is also the most densely populated office concentration in San Diego. La Jolla, with its high-end homes and retailers, is a 10-minute drive away.
“After years of meticulous planning, there is no doubt that the center will be transformed into a best-in-class product that is extremely well received, as we have seen time and time again with Festival,” says Grossman.
Based in New York, Meridian Capital Group provides services in real estate finance, investment sales and retail leasing. In 2017, Meridian completed over 3,000 loan transactions and sold nearly $1 billion in commercial property, according to the company. Meridian has offices offices in New Jersey, Maryland, Illinois, Ohio, Florida and California.