Stella Apartments: $46.5M construction financing secured for new urban oasis in San Diego

SAN DIEGO, Jan. 22, 2025 – JLL Capital Markets announced today that it has arranged a $46.5 million construction financing for Stella Apartments, a 149-unit multifamily development project in San Diego, California.

JLL represented the borrower, Murfey Company, in securing the three-year, floating-rate loan through Buchanan Mortgage Holdings, LLC, an affiliate of Buchanan Street Partners, LP.

Stella Apartments, located at 3104 El Cajon Blvd. in San Diego's North Park neighborhood, offers easy access to I-805, Hwy-163 and Hwy-5, while also being four miles from downtown. The community sits at the intersection of El Cajon Blvd. and Illinois St., near amenities, job centers and shopping. Its location appeals to those seeking urban living with connections to major employers and entertainment.

San Diego continues to be a thriving metro area with a strong economy, highly educated workforce and exceptional quality of life. The North Park neighborhood, in particular, has seen significant growth and revitalization in recent years, attracting young professionals and families alike.

Stella Apartments, a striking nine-story residential complex, offers a contemporary living experience with 73,243-square-feet of rentable space. This modern apartment community features a diverse range of studios, one- and two-bedroom units, all designed with contemporary finishes within a sleek concrete and glass structure. Residents can enjoy a host of amenities, including a rooftop terrace for panoramic views, a community gym, a large outdoor amenity space for social gatherings and a stylish lobby that sets the tone for sophisticated urban living.

JLL Capital Market’s Debt Advisory team representing the borrower was led by Senior Managing Director Aldon Cole, Managing Director Bryan Clark and Vice President Bharat Madan.

"The successful arrangement of construction financing for Stella Apartments underscores the continued strength of the San Diego multifamily market," said Cole. "This project's strategic location in North Park and its mix of unit types make it an attractive investment opportunity in today's market."

Murfey Company, a vertically integrated developer known for its mixed-income and mixed-use projects in San Diego, plans to begin construction in Q1 2025 with completion expected in Q2 2027.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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Jones Lang LaSalle Americas, Inc. ("JLL") is a real estate broker licensed with the California Department of Real Estate, license #01223413.

Murfey Company is a vertically integrated developer of mixed-income, mixed-use developments. Based in San Diego, the firm was founded to fill a grow­ing need for creative solutions in the urban landscape. With a long history in multifamily and commercial development, the firm’s principals Scott Murfey and Russ Murfey have a passion for quality design and efficient construction. Since its formation in 2009, Murfey Company has acquired and successfully executed on a host of multifamily developments throughout San Diego. The majority of these developments utilized the State’s affordable housing density bonus provisions and were mixed-in­come communities with units set aside for lower income residents.

Buchanan Mortgage Holdings, LLC, an affiliate of Buchanan Street Partners LP, originates non-recourse bridge and construction loans secured by commercial and multifamily properties in the Western U.S, utilizing its own balance sheet and fully discretionary lending capabilities to provide certainty of execution within short timeframes, flexible loan structures and creative financing solutions. The company’s extensive experience as an owner and operator of commercial real estate allows Buchanan to understand the varied needs of its borrowers to ensure they are able to successfully execute their business plans and maximize the value of the underlying real estate.