AAA Management, a real estate development firm based in San Diego, has locked down $99.4 million in debt and preferred equity to fund the construction of the mid-rise, 302-unit multifamily community Ion Aero located in San Diego's Kearny Mesa submarket, According to the Multihousing News, Bank OZK has contributed nearly $65.4 million in debt, Pacific Urban donated almost $34 million in preferred equity.
Bill Chiles, Scott Peterson, and Morgon Fraser of CBRE negotiated the three-year term, 75% loan-to-cost construction loan for AAA Management. Despite the challenging current economic climate, the finance package was tailored to the developer's needs, according to CBRE's Vice Chairman via The Registry SoCal.
Breaking ground by the year's end, the building process for Ion Aero is projected to last two years. Evidence suggests a demand for new Class A housing in the Kearny Mesa submarket, as Ion Aero will be precisely at 8555 Aero Drive in San Diego.
Ion Aero will include eight stories featuring an array of studio, one-, two-, and three-bedroom apartments in sizes ranging from 500 to 1,400 square feet. Innovative elements, like smart thermostats and USB ports, will be complemented by optional private decks and home-office spaces. A fitness center, yoga studio, playground, and dog run are among the comprehensive community features.
Ideally situated less than 10 miles from downtown San Diego, Ion Aero offers potential residents cultural experiences and entertainment options, including attractions like the San Diego Zoo and Petco Park. Proximity to the Montgomery-Gibbs Executive Airport and major retailers enhances the location's appeal.
Ion Aero represents a significant addition to AAA Management's burgeoning West Coast presence. Two other San Diego projects, and one in Shoreline, are also in the developer's pipeline as per the Multihousing News. Whilst the company mainly operates within California and Washington, it is exploring other regions for expansion.
In the city of San Diego, AAA Management has combined efforts with Trammell Crow Residential and Pacific Life Insurance Co. to erect Simone, a 36-story luxury high-rise located in the Little Italy neighborhood. Simone currently provides leasing opportunities for its studio and one- or two-bedroom units. AAA Management recently divested itself from the 164-unit Geo Shoreline community in Seattle, selling to Kennedy Wilson for $74 million, Multihousing News reported.
