Janez Properties Makes Plans for Mixed-Use Project

OCEANSIDE, CA-San Diego-based Janez Properties Inc. has outlined plans for a $34 million mixed-use project in Oceanside’s downtown redevelopment district. Upon completion, Oceanside Terraces will count 105,000 sf of condo units as well as retail and office space and will take 18 months to complete. It will also include two and a half levels of underground parking.Janez Development vice president Jeff Zuckerman tells Globest.com the design is unique. “Our entitlements dictated that we build something higher end, with stone exterior, as opposed to a big square with stucco.”The six-story building will include 38-condo units, 10,000 sf of ground floor retail space and roughly 18,000 sf of second-floor office space. The residential units will sit on floors 3-6. In the project, condo units will range from 1,600 sf to 2,600 sf and include ocean and mountain views. While details were not released on pricing for the units, estimates have them ranging from the $700,000s to more than $1 million. Floors 3-5 will have 10 units each, while the top floor will have eight penthouse units. Zuckerman says the firm has more than 300 names on the early interest list.As for the second floor, besides having more than 18,000 sf of office space for sale or for lease, it will also include around 35 residential storage units that will average 5ft by 10ft. Early demand for the office space has ranged from 1,100 sf to 5,500 sf. Retail space is also for sale or for lease with interest coming from four coffee houses, restaurants, day spas and a real estate company. Janez originally took interest in the project in spring 2004, when Oceanside Terraces’ original developer saw the project stall while working to clear various city requirements and hurdles. After meeting all the milestones and working through the entitlement process and design of the building, Janez closed on the project last week, according to Zuckerman.In the deal, Janez secured $26.4 million in construction financing from Chicago-based Corus Bank, with Tom Sherlock and Chris Dornin from Newport Beach-based Buchanan Street Partners, serving as capital advisor. An additional $8 million in equity was provided through a joint venture partnership with an undisclosed Midwest-based institution. Sherlock, an executive vice president with Buchanan Street Partners, tells Globest.com that “Corus Bank made a non-recourse construction loan with an A and a B piece—they were willing to get creative with the financing, which helped them win the loan.”With the city driving for the redevelopment district to boom, the Janez project will beat many others to the punch. “Oceanside Terraces is the first mixed-use project with an office component in the redevelopment district,” says Zuckerman. He adds that multiple projects are on tap in the area, including hotel and timeshare projects and four residential projects that will all be announced or kicked off within the next six months.