The institutional placement, which was closed by La Jolla-based Silver Portal LLC on behalf of Olson, will serve as a mezzanine-debt facility for the developer. Moving forward, the developer will now use a new capital structure, which will consist of traditional bank lines, Olson's own equity and the mezzanine-debt facility. This new structure will "eliminate the company's need to get a traditional mezzanine-debt piece on a deal-by-deal basis," Eric Wurtzebach, a director with Silver Portal, tells GlobeSt.com.

The placement, which can be drawn down for the next seven years, will help fund Olson's $1-billion development pipeline, which is expected to stretch out over the next three years. "As the facility is drawn down, capital can be put back in and get reused," Wurtzebach says.

Olson, which has offices in San Diego, Orange County and Northern California, will use the capital to continue to build urban housing in coastal communities throughout California. Established in 1988, Olson has specialized in transforming in-town locations into urban neighborhoods of attainably priced homes.