Exclusive: BRIDGE Shells Out $41M in San Diego
The transaction marked a substantial premium to the 2016 price tag.
BRIDGE Housing has acquired the 128-unit Skyline Apartments in Spring Valley, Calif., from LLJ Ventures, according to Yardi Matrix data. The asset traded for $40.5 million, marking a 55.8 percent premium compared to its 2016 price tag of $26 million.
Earlier plans outlined by a different company included the income-restricted conversion of the property to residents earning up to 60 and 80 percent of the area median income, according to a County of San Diego board of supervisors’ agenda item. Part of the affordability aspect was implemented by BRIDGE, as revealed by the property’s website.
The 1985-completed Skyline Apartments already underwent substantial interior and exterior renovations, with approximately 95 percent of units benefitting from upgrades, the county document revealed.
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The community includes one- to three-bedroom layouts between 627 and 1,012 square feet. Common-area amenities consist of a swimming pool and spa, resident lounge and playground, as well as an outdoor kitchen, among other features.
Located at 8513 Paradise Valley Road, Skyline Apartments is in the La Presa neighborhood, less than 1 mile from California Route 125. Numerous parks, recreation areas and retail outlets are within walking distance.
While several other multifamily deals closed this year throughout San Diego’s Southeast submarket, the assets were uniformly dispersed, suggesting multifamily transaction activity was not driven by a single geographic or economic catalyst.
The same may not be said for the downtown area, which witnessed several high-profile transactions this year. Among them was West, a partially affordable, 431-unit asset. The community was part of BGO’s four-asset, $954 million portfolio acquisition from Holland Partner Group, Yardi Matrix shows.
Another downtown trade closed in February, when MG Properties teamed up with Canyon Capital Realty Advisors for the acquisition of the 368-unit Shift from Quarterra. Walton Street Capital funded the purchase with a $99.4 million loan.
BRIDGE Housing’s expanding multifamily inventory
BRIDGE has a portfolio of more than 130 properties valued at north of $4 billion, according to its website. One of the more recent additions is the 108-unit Latitude in Everett, Wash. Friedkin Property Group sold it for $25.4 million two months ago, according to the data provider.
And BRIDGE’s holdings are set to expand even more as the company launched its first private equity fund last year, aiming to raise $350 million and enable $1 billion in acquisitions and preservations to create affordable housing across California, Oregon and Washington. The capital will go toward the acquisition of approximately 20 assets totaling 3,500 units across the fund’s three-year investment period.
