Capital Flows Into San Diego Multifamily Market as Lenders Increase Allocations
San Diego's multifamily sector certainly isn't short of capital — and importantly, it's now flowing across the market.
Most lenders have increased their multifamily lending allocations in 2026, including Fannie Mae and Freddie Mac, which expanded their lending caps by more than 20% compared to 2025.
"This increased supply of debt for apartments has created a very competitive lending environment," Northmarq Managing Director Aaron Beck told GlobeSt.com.
Lenders across the board in the market, including agency, life companies, banks and debt funds — are competing aggressively to win business, he added.
"Borrowers with a proven track record and well-positioned assets are securing the most compelling debt terms, according to Beck.
"San Diego's strong occupancy and resilient rental rates, relative to the national average, continue to make it one of the more attractive markets in the country for lenders to deploy capital."
A recent deal completed by Northmarq's San Diego Debt + Equity team, led by Beck and Bryce Quezada, was $13.275 million in financing for Talas Apartments, a 48-unit multifamily garden community at 2114 E. 7th St. in National City, California, within the San Diego MSA.
Northmarq arranged the refinance on behalf of the borrower, KIRE Group, through the firm's in-house Fannie Mae DUS platform. The permanent fixed-rate loan is structured on a five-year term with full-term interest-only payments.
Talas Apartments offers studio, one- and two-bedroom units with modern finishes, in-unit washers and dryers and private balconies or patios. Built in 2025 and situated in the National City submarket, the community offers access to nearby shopping, parks and major transportation corridors, including Interstate 5 and Interstate 805.
Source: GlobeSt/ALM