Archway Capital Provides $42.9 Million Loan for Major Retail Acquisition in San Diego County
Archway Capital's $42.9 million loan for the acquisition of a major portion of The Shoppes at Carlsbad demonstrates the growing role of alternative lenders in financing complex commercial real estate transactions that traditional banks often avoid.
Archway Capital LLC has provided a $42.9 million loan to Steerpoint Capital for the acquisition of a major portion of The Shoppes at Carlsbad, a 1.1 million-square-foot retail center in Carlsbad, California. The transaction represents Archway Capital's largest and most complex deal to date, highlighting the increasing significance of alternative lenders in the commercial real estate finance sector.
The acquired portion totals 727,000 square feet and is currently 74% occupied with a diverse tenant mix including Yard House, The Cheesecake Factory, Hollister, American Eagle Outfitters, Dave & Busters, 24 Hour Fitness, and Regal. Anchor tenants not included in the sale are Macy's (North and South) and JCPenney. The property, located at 2525 El Camino Real in north San Diego County, occupies 98 acres in an affluent, densely populated area at the junction of Interstate 5 and Highway 78.
Bobby Khorshidi, CEO and CIO of Archway Capital, stated that the firm won the business because the borrower trusted them to move fast and stay flexible, valuing their successful track record with complex transactions. Unlike traditional banks that follow rigid underwriting standards, Archway customized the loan, accepted the risk profile, and offered a non-recourse structure, which is rare for deals of this size and complexity.
The borrower has allocated $4 million for property improvements, including entrance upgrades, enhanced common area seating, digital signage additions, and bathroom renovations. The Shoppes at Carlsbad, which was renovated in 2017, offers a customer-friendly, family-oriented atmosphere with diverse retail, dining, and entertainment options. For more information on Archway Capital's offerings, visit https://ArchwayFund.com.
This transaction exemplifies how alternative lenders like Archway Capital are filling a crucial gap in commercial real estate financing that traditional banks often overlook, particularly for complex, transitional properties requiring flexible financing solutions and rapid execution.