Branding a new Can

Paul Clinton

Luxury home developer Kevin Weeda rolled the dice a bit when he began

developing the concept for the Cannery Lofts, on schedule for an

August completion.

The spacious high-end lofts in Cannery Village have no precedent

in the area. Weeda has used a modern, somewhat edgy, architectural

style. And even their ritzy price tags, starting at slightly more

than $1 million, haven’t slowed a stream of interest in them.

“If you talk to any standard home developer, this would be

financial suicide,” Weeda said. “Our goal was to have the project

sold before completion, and we’re slightly ahead of that right now.”

Weeda, since receiving the California Coastal Commission’s

approval on the project in July, has sold 14 of the 22 lofts and

maintains a waiting list of 500 potential buyers. Weeda has set up an

office in the village that simulates the look of the lofts, but these

14 buyers have essentially bought in sight unseen.

Bob Beers, a retired aerospace executive, was the first to

purchase a loft last year.

Beers retired in 1999 and has wanted to get back to his first love

-- painting. Beers earned a master’s in fine arts before getting into

the aerospace field as a marketing executive. He said he is excited

to move into the “live-work” loft, which will be given an industrial

look, so he can create a working studio for his art.

“It’s pretty much a blank canvas,” Beers said. “You can start to

do things and give them their own personality.”

As the first customer in line, Beers has first choice on one of

the lofts, which are expected to be completed in two stages, in

August and October. Of the 22, four will be on the Rhine Channel

waterfront and 18 will be somewhat inland, at 30th Street, between

Villa Way and LaFayette Avenue.

Weeda has said he will complete the four waterfront lofts first --

by Aug. 1. Those are expected to retail for as much as $2.8 million.

The inland lofts are selling for $1.3 million to start.

In addition to Beers’ studio, Weeda said the project should

attract artists, graphic designers, architects and other

professionals. The two-story lofts could also attract some high-end

retail uses.

“They are more affluent, creative professionals than business

professionals,” Weeda said. “It’ll really be a village within a

village.”

With their high ceilings, 3,000-square-foot floor plans, enviable

location and proximity to the area’s top restaurants and shopping,

the lofts have won the admiration of other Realtors.

“It’s very different from anything you’ve seen built in Newport

Beach before,” said Steve High, president of Strada Properties. “It

looks like a fun place to live.”

From a lending standpoint, Weeda has also strayed from the norm.

Financing for the project was in place before the Coastal

Commission’s July 8 approval. Weeda needed special approval from the

commission to exceed the 26-foot height limit by 7 feet.

Weeda pinned down financing from Bank of America. He said the

project required intense lender scrutiny, especially from former

regional manager Tom Farrell and senior loan consultant Teri Brown.

Finding comparable properties to set the market value on the lofts

was a struggle, Weeda said.

“There’s nothing like them in the area,” Weeda said. “But there’s

a lot of residential to buoy value.”

* PAUL CLINTON covers the environment, business and politics. He

may be reached at (949) 764-4330 or by e-mail at

[email protected].