La Jolla-based Silver Street Partners has obtained $16.25 million in construction financing through George Smith Partners to build the Silver Springs Townhomes, an 18-unit luxury townhome project in La Jolla.

“This project will be the first of its kind to come online in the La Jolla submarket in many years,” said Jonathan Lee, principal with Los Angeles-based George Smith Partners. “This market is extremely supply constrained and competitive, and demand for residential product in this high-end area continues to climb.”

The development site consists of two parcels, at 7601 Draper Ave. and 720 Silver St., on which a single-story veterinary clinic and a U.S. Postal Service location currently exist. The 41,881-square-foot development will replace these structures, resulting in a centrally located residential community within walking distance of restaurants, shopping and the bluffs overlooking Torrey Pines and the Pacific Ocean.