New 1,500 Project Addresses Multifamily Demand in Santa Maria
Priority Capital Advisory has closed a $174 million loan on behalf of the ownership for Blosser Ranch, a 160-acre master-planned development in Santa Maria, California, an area that desperately needs more housing.
This housing project in the largest city in Santa Barbara County is receiving financing for both horizontal and vertical construction in the first phase, a 302-unit, three-story garden-style multifamily community situated on 12 acres.
It recapitalizes the remaining land within the entire development, positioning the borrower for the project?s six future subphases.
This financing is important not just because of its size and complexity, but because of what it represents for Santa Maria and California more broadly, Zachary Streit, founder and president of Priority Capital Advisory, tells GlobeSt.com.
Santa Maria has seen sustained population and employment growth for years, yet housing supply has lagged meaningfully behind demand, he said.
?[Blosser Ranch] directly addresses that imbalance by delivering much-needed, high-quality rental housing in a market that has been historically underbuilt,? according to Streit.
Santa Maria has experienced steady population growth, yet new housing deliveries have remained limited. From 2010 to 2020, its population grew by more than 10,000, while only 1,102 new housing units were delivered, according to CoStar.
?At a statewide level, projects like this are critical as California continues to face housing shortages, particularly in coastal and job-driven markets,? Streit said.
?Ultimately, Blosser Ranch sets the foundation for long-term community growth while responding to the realities of multifamily demand across the state.?
Blosser Ranch will feature a total of 1,500 units, ranging from studios to one, two and three-bedroom floor plans. The sizes range from 490 to 1,188 square feet.
The Class A community will offer an amenity program that includes a pool and spa, clubhouse, fitness center, business center, outdoor BBQs and firepits, pet park and playground. The first phase is underway, with completion anticipated in the summer of 2027.
The financing was arranged through a structured capital stack comprised of $62.5 million mezzanine financing, originated by Lionheart Strategic Management, LLC, led by Andy Klein, managing director and co-Head of investments at the firm and $111.5 million senior construction financing, originated by Centennial Bank, led by Garron Robinson, managing director.
Santa Maria?s largest employer is Vandenberg Space Force Base, approximately 20 minutes from the site and an epicenter for activity tied to the expanding commercial space economy. Farming is another prominent industry with an annual crop value exceeding $1.4 billion.
Source: GlobeSt/ALM