Lightstone Capital has closed a $34.25 million bridge loan for Kaya Apartments, a newly completed multifamily project in San Diego's Bankers Hill neighborhood. Developer Jeff Svitak secured the senior debt through John Zubak, managing director and head of origination for Lightstone Capital's western region.
The refinance structure positions Svitak to stabilize the asset while avoiding conventional long-term financing constraints. Bridge loans typically offer faster underwriting and closing timelines than traditional mortgages, making them attractive for developers exiting construction phases quickly. The Bankers Hill location puts the property near downtown San Diego's job centers and transit access, factors that support rental demand.
For Svitak, the bridge financing buys time to either stabilize occupancy before seeking permanent financing or explore sale opportunities as the San Diego multifamily market recovers. For potential buyers or permanent lenders, the move signals confidence in the property's income potential. Bankers Hill has seen steady apartment development, though rent growth moderated in recent years as supply increased.
Lightstone Capital's involvement reflects broader lender appetite for completed multifamily assets in major West Coast markets. The deal size sits in the mid-market range typical for neighborhood-focused San Diego projects. Permanent financing will likely follow within 12 to 24 months once the property demonstrates lease-up and operational stability.
For tenants at Kaya Apartments, the bridge loan carries no immediate implications. Rent rates and lease terms remain unchanged. The financing simply transfers risk from construction lenders to Lightstone Capital while giving Svitak flexibility on the next capital move.
The deal underscores San Diego's multifamily market maturation. Developers no longer hold newly completed projects on balance sheets indefinitely. Instead, staged financing strategies allow capital recycling and faster deployment to new deals. This