SummerHill Secures $123.5M for San Carlos Multifamily Development

SummerHill Apartment Communities (SHAC) has secured $123.5 million in construction financing for a new multifamily development in San Carlos, California. The funding comprises a $96.5 million senior construction loan provided by Fifth Third Bank and California Bank & Trust (CB&T), complemented by a $27 million preferred equity investment from TruAmerica Multifamily.

The six-story project, located at 11 El Camino Real in San Mateo County, is set to begin construction soon. It will feature 251 apartments, with 38 units designated as affordable housing. This transaction marks TruAmerica Multifamily's first preferred equity financing since launching its structured finance platform last year, led by Ash Baraghoush.

San Carlos is highlighted as a strong multifamily market due to its proximity to the San Francisco Bay Area's technology and life science sectors. The submarket currently boasts a 97 percent multifamily occupancy rate and has experienced double-digit rent growth. Developers and investors are noting the continued demand for affordable workforce housing in the region, driven by return-to-office trends and the AI industry boom.