Archway Capital Provides $42.9 Million Loan for Major Retail Acquisition in San Diego County

Archway Capital LLC has provided a $42.9 million loan to Steerpoint Capital for the acquisition of a major portion of The Shoppes at Carlsbad, a 1.1 million-square-foot retail center located at 2525 El Camino Real in Carlsbad, California. The acquired portion totals 727,000 square feet and is currently 74% occupied with tenants including Yard House, The Cheesecake Factory, Hollister, American Eagle Outfitters, Dave & Busters, 24 Hour Fitness, and Regal. This transaction represents Archway Capital's largest and most complex deal to date, highlighting the increasing importance of alternative lenders in the commercial real estate financing landscape.

The significance of this transaction extends beyond its size, as it demonstrates how non-traditional lenders are filling critical financing gaps left by traditional banks. According to Bobby Khorshidi, CEO and CIO of Archway Capital, the firm won the business because the borrower trusted them to move fast and stay flexible, valuing their successful track record with complex transactions. Unlike traditional banks that operate under rigid underwriting standards, Archway customized this loan, got comfortable with the risk profile, and offered a non-recourse structure that is rare for deals of this size and complexity.

The property itself holds strategic importance in the San Diego County retail market. Located at the junction of Interstate 5 and Highway 78, The Shoppes at Carlsbad serves an affluent, densely populated area and was renovated in 2017 to provide a customer-friendly, family-oriented atmosphere with diverse retail, dining, and entertainment offerings. The borrower has allocated $4 million for property improvements, including upgrading entrances, enhancing common area seating, adding digital signage, and bathroom renovations, which should further strengthen the property's competitive position in the regional retail market.

This transaction matters because it illustrates a broader trend in commercial real estate finance where bridge lenders like Archway Capital are increasingly handling complex deals that traditional financial institutions may avoid due to regulatory constraints or risk aversion. The successful execution of such a substantial loan for a partially occupied retail property during a period of retail market transformation shows confidence in the asset's long-term viability and the borrower's business strategy. For more information about Archway Capital's lending programs, visit https://ArchwayFund.com.