Mesirow Pays $185M for San Diego Community
This marks the second-biggest deal of its kind this year in the metro.
In the second largest single-asset deal in San Diego and the fifth in California this year, Mesirow has paid $185 million for Preserve at Melrose, a 410-unit multifamily property. The company also took out a $118.7 million Fannie Mae CMBS loan originated by Walker & Dunlop, Yardi Matrix shows.
Walker & Dunlop also brokered the sale on behalf of both parties. MG properties sold the asset, according to the same source. The firm acquired it in June 2017 for $134 million from Trammell Crow Residential.
The Class A community came online in 2015 and consists of 10 three-story buildings spread across more than 20 acres. The unit mix comprises one-, two- and three-bedroom floorplans ranging between 761 and 1,358 square feet. Apartments feature private balconies or patios and walk-in closets.
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Common-area amenities include a fitness center, dog park, social lounge and billiards table, barbecue pavilion with outdoor firepits and open green space. Additionally, the property has a coworking lounge and onsite playground.
Located at 1401 N. Melrose Drive in Vista, Calif., Preserve at Melrose is less than 41 miles from downtown San Diego. San Diego International Airport is within 40 miles southeast.
Walker & Dunlop Managing Director Hunter Combs led the Investment Sales team that represented the seller and the buyer.
San Diego multifamily investment volume on the rise
San Diego’s multifamily transaction volume registered 15 multifamily properties—about 2,640 units—trading year-to-date as of November, totaling $951.3 million in sales. This marks a slight increase from the 12 assets—roughly 2,765 apartments—changing hands for $784.8 million during the same timeframe in 2023.
In July, GID Real Estate Investment purchased Millennium PQ, a 331-unit community in San Diego, for $167 million. The Dinerstein Cos. sold the eight-building asset.
At the beginning of the year, Northwestern Mutual sold Pulse Millenia, a 273-unit multifamily property in Chula Vista, Calif., for $116 million. MG Properties purchased the 2016-completed asset, which is part of the Millenia master-planned development.
