ACORE Capital Provides $71.25 Million Construction Loan to North Palisade Partners for Santee Industrial Project
SAN DIEGO — ACORE Capital has provided a $71.25 million construction loan to North Palisade Partners for the acquisition and development of Palisade Santee Commerce Center, an approximately 291,000-square-foot industrial project in Santee, California, the firm announced Oct. 5.
The financing supports the acquisition and ground-up construction of the project. Cushman & Wakefield arranged the loan on behalf of North Palisade Partners. The team included Rob Rubano, executive vice chairman; Brian Share, vice chair; and Joe Lieske, managing director.
Palisade Santee Commerce Center: Project Details
The development is planned at 10990 N. Woodside Avenue on an infill site of approximately 13.5 acres. It will comprise two buildings totaling 290,618 square feet, with tenant spaces ranging from approximately 25,500 square feet to a full-building leasing configuration.
Planned features include:
- 36-foot clear heights
- 54 dock-high doors and six ground-level doors
- A secured 185-foot truck court
- Approximately 296 parking spaces
The land was reportedly acquired for $22.7 million. The loan equates to roughly $245 per planned square foot, a financing metric that is distinct from total development cost.
The property is near State Route 67 and Interstate 8, providing access across San Diego County and to regional transportation infrastructure, including the Port of San Diego and San Diego International Airport. The site is approximately 20 miles northeast of downtown San Diego.
Construction is expected to begin in the third quarter of 2026, with delivery anticipated in the fourth quarter of 2027.
Lender and Sponsor Comments
"Palisade Santee Commerce Center adds modern, high-spec mid-bay industrial space to a submarket where vacancy has generally held below 3% over the last 10 years," said Dimitar Goulev, managing director, originations at ACORE Capital. "North Palisade Partners brought us a well-defined plan for this site. Our financing is structured to support them from acquisition through construction and lease-up."
Joe Maeler, CFO of North Palisade Partners, said the project "has been more than four years in the making, and with the project fully entitled and ready for construction, choosing the right lender for this next phase was critical." He added, "We leaned on our long-standing relationship with ACORE, knowing we needed a lender that was not only creative and competitive, but one we could count on to deliver."
East County Industrial Market Context
The project is in San Diego's East County submarket, where ACORE Capital said vacancy has consistently remained below 3%. New supply in infill locations is constrained by land availability, entitlement timelines and construction costs. The Santee site is fully entitled, which allows construction to proceed on a defined schedule.
With delivery planned for late 2027, the project will need to lease nearly 291,000 square feet in the years ahead. The planned specifications are intended to serve logistics, light manufacturing and distribution users seeking modern functionality.
ACORE Capital's Lending Platform
ACORE Capital, headquartered in New York, originates, acquires and manages first mortgages, B-notes, mezzanine debt and preferred equity on behalf of institutional investors. The firm reported more than $17 billion of assets under management as of June 30, 2026, and maintains offices in Los Angeles, Miami, San Francisco and Dallas.
In February 2026, ACORE Capital closed a $1.1 billion commercial real estate CLO backed primarily by multifamily and industrial loans. The firm has reported approximately $46 billion in total transaction activity and 592 transactions since inception, as of June 30, 2026.
Outlook
The Santee loan pairs a fully entitled infill site and low reported submarket vacancy with a construction financing structure running from acquisition through lease-up. Delivery of Palisade Santee Commerce Center is anticipated in the fourth quarter of 2027.
Sources
- ACORE Capital, "ACORE CAPITAL Provides $71.25 Million Construction Loan for Palisade Santee Commerce Center in San Diego": https://acorecapital.com/acore-capital-provides-71-25-million-construction-loan-for-palisade-santee-commerce-center-in-san-diego/