The situation as reported
Chapman Place is a 3-story, newly built multifamily property at 3910 Chapman Street in the Point Loma submarket of San Diego, near SeaWorld and the planned Midway Rising sports arena project. The published announcement describes it as class A, built to condo-level finishes, with 82 units: 40 studios, 36 1-bedrooms, and 6 2-bedrooms averaging 584 square feet.
The borrower, Chapman Place LLC, is described as a private investor. The announcement reported the property as 25 percent leased at the time of closing, and third-party manager Southwest Equity Partners runs the property. The building was finished, the original construction loan still had to be repaid, and most of the units were not yet leased.
- Property: Chapman Place Apartments, 82 units, newly built, class A
- Location: 3910 Chapman Street, Point Loma submarket, San Diego
- Borrower: Chapman Place LLC, represented by Capital Partners
- Lender: Thorofare Capital, an affiliate of Callodine Group
- Closed: January 11, 2024
Why a lease-up bridge loan fit
Permanent lenders size loans on in-place income. A building that has just delivered has little of it, so a permanent loan sized at that point would fall short of the construction loan balance. A bridge lender underwrites the finished asset, the submarket, and the plan to lease it, then gives the sponsor time to reach stabilized occupancy before refinancing again.
The published announcement states this purpose directly: the floating rate, short-term bridge loan gives the borrower runway to lease up and stabilize occupancy, and most of the proceeds went to retire the original construction loan. Thorofare's originator said the lender was drawn to the submarket for its coastal location, renter demographics, and lack of modern luxury apartments in the Ocean Beach, Point Loma, and Midway areas.
The execution
Kevin Heisser, CEO, and Jonathan Fulton, Managing Partner, represented Chapman Place LLC in arranging the financing, as named in the coverage from Multi-Housing News, Connect CRE, the New York Real Estate Journal, and Yield PRO. Commercial Real Estate Direct also reported that Capital Partners arranged the loan.
The published coverage does not report the interest rate, loan term, extension options, or reserve structure, so this page does not state them. The firm's own track record lists the loan at $26.2M, and the press reported it as a $26,000,000 loan.
The result as reported
The loan closed on January 11, 2024. The coverage reported that most of the proceeds retired the construction loan, which took the construction maturity off the table and gave the owner a new lender whose loan was built around finishing the lease-up. Thorofare also noted in the same announcement that it had previously lent on a recently delivered 36-unit project in lease-up about 1.1 miles away, which shows the lender already knew the submarket.
Nothing published since describes the property's current occupancy or its eventual permanent financing, so this page makes no claim about either.
What a sponsor with a similar deal should prepare
General practice, not a term of this deal: lease-up bridge lenders move faster when the package answers their underwriting questions up front. They want to see that the building is complete, how quickly units are leasing, what concessions it takes to lease them, and how the sponsor will carry the property until income covers debt service. Before you go to market, run the stabilized numbers through the debt yield calculator so you know what a permanent loan could size to at the exit.
When the package is ready, submit the deal and a principal will review it against the lender database.
- Construction loan payoff letter and maturity date
- Certificate of occupancy and any open punch list or holdback items
- Current rent roll, weekly leasing activity, and traffic-to-lease conversion
- Concessions offered to date and asking rents against nearby comparables
- Lease-up budget covering marketing, staffing, and operating shortfalls
- Sponsor financial statement and liquidity available to carry the property
- Property management agreement and the manager's local track record
- Target stabilization date and the intended permanent loan or sale exit
Published closings
Send this deal to a principal
Share the basics now. A principal responds within 1 business day, and you can send the full package after the first conversation.
Common questions
What is a lease-up bridge loan?
It is short-term financing on a newly completed property that is still leasing units. General practice is for the loan to repay the construction lender and carry the property until occupancy and income support permanent debt or a sale.
How much was the Chapman Place loan?
The firm's track record lists it at $26.2M. Trade coverage in January 2024 reported it as a $26,000,000 loan from Thorofare Capital.
How leased was the property when the loan closed?
The published announcement reported the property as 25 percent leased at closing. That is why a lease-up bridge loan fit better than permanent debt at that point.
Were the rate and term published?
No. The coverage describes the loan as floating rate and short-term but does not publish the rate, term, or extension options, so this page does not state them.
Can Capital Partners arrange lease-up financing on a newly built property outside San Diego?
Yes. Capital Partners arranges bridge and permanent financing from $1M to $100M nationwide. Send the rent roll, construction loan details, and leasing plan and a principal will review the request.