ABP Capital provided a $6,700,000 retail construction loan to fund the ground-up development of a largely pre-leased, neighborhood-serving retail project in Carlsbad, California. The fully entitled 1.95-acre site is approved for two single-story buildings totaling 10,832 rentable square feet, designed for a mix of food-and-beverage, daily-needs, and service-oriented tenants.
The project is the dedicated retail component of a newly delivered master-planned residential community, giving the center a built-in customer base from opening day rather than relying on future home absorption. A pedestrian connection links the surrounding townhomes directly to the shops, and the site offers frontage and visibility on one of Carlsbad’s primary north–south commercial corridors. More than 60% of the space was pre-leased to long-term, triple-net tenants before vertical work began.
The 24-month, interest-only loan was structured around the full path from graded pad to stabilized center. Proceeds fund hard and soft costs, tenant improvements and leasing commissions for both signed and future tenants, and an interest reserve sized to carry the project through construction and into lease-up. Rather than lending against the land alone or leaving the sponsor to source separate capital for tenant buildouts, ABP Capital sized a single facility to the complete business plan — allowing the borrower to break ground immediately after closing and deliver tenant-ready space on schedule.
Carlsbad sits in coastal North County San Diego, one of the region’s most supply-constrained retail submarkets. High land costs, lengthy coastal entitlement processes, and a shortage of available parcels have kept new neighborhood retail deliveries scarce, while roughly 217,000 residents within five miles and above-average household incomes support steady demand for restaurant, service, and daily-needs users. Newly built, well-located neighborhood centers in the submarket continue to attract tenants ahead of older inventory.
This financing reflects ABP Capital’s continued appetite for pre-leased, ground-up commercial development across Southern California.
ABP Capital is a direct, balance-sheet lender providing bridge and construction financing nationwide. Borrowers and brokers with a ground-up retail, construction, or bridge financing need are invited to contact our origination team.
