SAN DIEGO—Debt broker Meridian Capital Group has negotiated a $21.1 million acquisition loan for the purchase and improvement of the Sorrento Court retail property on behalf of The Festival Companies, a Los Angeles-based retail developer.

The 36-month loan, provided by a debt fund, features full-term interest-only payments, a floating-rate in the low 4% range and two 12-month extension options. This transaction was negotiated by Meridian managing director, Seth Grossman, and associate, Andy Strauss, who are both based in the company's Carlsbad office.

The 96% occupied, 55,000 square foot shopping center is located at 9420-9460 Scranton Road and is the most heavily trafficked retail property in the Sorrento Mesa Submarket; the technology-office hub of San Diego. Sorrento Court boasts 17 quick-service restaurants and is the premier dining destination servicing the office buildings in the area. Major national tenants include Starbucks, Jamba Juice, Staples, Bank of America and JP Morgan Chase. The property's high occupancy and strong performance are driven in part by shared access to an adjacent two-building, 1.1 million square foot class A office complex, in addition to being in immediate proximity to more than 5 million square feet of Qualcomm office buildings.