At 1.5% vacancy, the lender is underwriting the scarcity of the site, not the tenant.
ACORE Capital provided $71.25M of acquisition and construction financing to North Palisade Partners for Palisade Santee Commerce Center, two buildings totaling 290,618 sf in Santee, about 20 miles northeast of downtown San Diego. The site cost $22.7M and completion is expected in late 2027.
The loan works out to about $245 per sf of planned building, and the site to about $78 per sf, roughly 32% of the loan amount (derived).
Implications
Infill industrial in constrained California submarkets is financeable on land scarcity. Test the late-2027 delivery against rent growth and competing deliveries; treat 1.5% vacancy as a starting point, not a leasing assumption.
Flags: Single source. Pre-leasing, rate, term and leverage not disclosed. Whether the loan funds the full budget is not stated. Per-sf and share figures are CRE360 derivations.
Related coverage
Key Takeaways
- The loan is about $245 per sf of planned building
- Land is about a third of the loan amount
- Delivery is more than a year away, so vacancy at completion is unknown
Commercial Observer, ACORE Lends $71M on San Diego-Area Industrial Development, Oct. 5, 2026
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