Civitas Capital Group, a Dallas-based alternative investment manager offering niche opportunities in U.S. real estate, has closed on a senior construction loan to Blatteis & Schnur for the development of a high-street retail and creative office project at 1404-1408 Third Street Promenade in Santa Monica, California.
Upon completion in 2024, 1404-1408 Third Street Promenade will be the only new, state-of-the-art, ground-up construction on the supply-constrained Third Street Promenade, the company said. Comprising approximately 25,000 square feet, the property will feature a modern design with a glass, steel and concrete structure framed by steel I-beams extending from the street level to the top of the second floor. The building will offer tenants a dramatic façade of floor-to-ceiling-windows and high ceilings throughout. The fourth floor will have a 4,000-square-foot outdoor roof terrace, the only one of its kind on Third Street Promenade.
“This project is a perfect example of Civitas’ opportunistic strategy,” said Jorge Adler, vice president of Investments and team lead on the project for Civitas. “Our team is constantly on the lookout for opportunities others miss, and this project is one in which we believe we can add substantial value moving forward.”
In addition, Civitas announced a new lending partnership with Oklahoma-based Blue Sky Bank and Stride Bank. Together the groups will look to provide commercial real estate investors and developers with creative solutions for both existing assets and development opportunities. The firms worked together on the closing of the senior construction loan for the 1404-1408 project.
“During the most volatility we have seen in the commercial real estate financing market since the Global Financial Crisis,” says Austin Kahn, managing director of investments for Civitas. “Blue Sky and Stride have flawlessly delivered on their commitments on note financings for Civitas, and we look forward to continuing and strengthening that relationship in the years to come.”
