AAA Management has secured a $99.4 million debt and preferred equity package to back the construction of the 302-unit Ion Aero project in San Diego. Bank OZK provided nearly $65.4 million in debt, while Pacific Urban provided nearly $34 million in preferred equity.
CBRE’s Bill Chiles, Scott Peterson and Morgon Fraser secured the three-year term, 75 percent loan-to-cost construction loan for AAA Management.
The developer is expected to break ground on the mid-rise multifamily community by the end of the year, with construction expected to last 24 months. Ion Aero will offer studio and one-, two- and three-bedroom apartments ranging from 500 to 1,400 square feet. The units will include smart thermostats and USB ports, while select units will have balconies and private decks and dens or office space. The community’s amenities will include an indoor-outdoor fitness center, yoga studio, coworking space, clubroom, playground, dog run, pool, spa, and sky lounge.
Located at 8555 Aero Drive in San Diego’s Kearny Mesa submarket, the community is less than 10 miles away from downtown San Diego and its cultural attractions and entertainment venues including the San Diego Zoo, Petco Park and the San Diego Convention Center. Ion Aero is located across from the Montgomery-Gibbs Executive Airport and a short drive away from nearby retailers and restaurant options, like Target, Costco and The Home Depot.
West Coast presence
Along with Ion Aero, AAA Management has two other projects in San Diego and one in Shoreline in its development pipeline. The San Diego-based firm has mostly built a portfolio of communities across California and Washington state, including in Chula Vista, Calif., and Auburn and Everett, Wash, but is looking to expand to other regions.
Elsewhere in San Diego, the firm partnered with Trammell Crow Residential and Pacific Life Insurance Co. to develop the 36-story Simone. The luxury high-rise in San Diego’s Little Italy neighborhood is currently leasing its studio, one- and two-bedroom units. Recently, AAA Management also sold off its 164-unit Geo Shoreline community in Seattle for $74 million to Kennedy Wilson.
