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CARLSBAD, CA-Developers remain bullish on office product locally with confidence holding firm even with spec projects. The latest project is a 223,466-sf class A office property being planned by local firm Newport National Corp.Total project costs were not available, but the firm did land an $8.4-million mezzanine loan from El Segundo-based Pacific Coast Capital Partners to acquire the 13.3-acre site. PCCP made its investment through the Southern California Smart Growth Fund, an institutional equity fund.The two real estate companies previously partnered on a project in the Scripps business corridor, according to Rob Cohen, vice president with Pacific Coast Capital Partners. "We executed that deal successfully and based on that success, we stayed in close contact with them and they presented us with this opportunity," Cohen tells GlobeSt.com. "We don't have any leases signed up now, but [there are] active discussions with prospective tenants taking place."The property, known as Ventana Real, is a three-building site that is being developed with a flexible design. The property will have two three-story buildings and one two-story building. "The three-story buildings might be better suited for multi-tenants while the two-story building would be great for a single tenant, but the property is flexible" and could be leased up in a number of different ways, says Cohen.Ventana Real's first phase will break ground during the second quarter of 2006. It will include one three-story, 81,000-sf building and one two-story 61,600-sf building. Phase I is set for a mid-2007 completion date. As for Phase II, it calls for an 81,000-sf, three-story building that will begin construction in 2008 with completion set sometime in 2009.First Bank is the construction lender on the project while Norman Kerlin, Mark Avilla and Justin Halenza of the Carlsbad office of Grubb & Ellis/BRE Commercial will handle the leasing of the buildings in conjunction with Scott Brusseau of Newport National Corp.This latest project adds to Newport National's stake in the Carlsbad submarket. The firm has developed 11 projects topping 800,000 sf of class A office product in the area. Among the projects are the 83,682-sf Emerald Lake Corporate Centre; The Atrium, a 60,824-sf; and the 186,000-sf Cornerstone Corporate Center.