San Diego Downtown Horton Project Faces Lender Seizure
Financial Struggles and Lender Intervention Amid mounting financial challenges, the San Diego Downtown Horton Project, managed by Stockdale Capital Partners, began to unravel due to substantial financial distress. Problems arose with missed loan payments and inadequate developer relations. This led to a significant default with their lender, AllianceBernstein. The original developer's failure to adhere to loan terms initiated a foreclosure process. Investor pullbacks in Chicago’s retail sector , illustrated by Michigan Avenue's high vacancy rates, reflect a broader cautious sentiment that influenced similar projects. The project's decline was exacerbated by the pandemic, which drastically reduced demand for downtown office spaces, making the transformation less appealing. The project was repossessed by the lender in mid-2025. An auction aimed at attracting interested buyers resulted in no bids. This starkly illustrated the financial viability concerns surrounding the develo...