Exclusive: Greystar Closes $181M San Diego Sale
The community debuted last year following a hospital-to-residential redevelopment.
Greystar has sold The Grand at Palomar Heights, a 420-unit luxury community in Escondido, Calif., for $180.5 million, according to Yardi Matrix data. Mesirow purchased the asset, funding the acquisition with a $112 million loan from AIG.
The property debuted last year following the redevelopment of a nearly 70-year-old hospital in downtown Escondido. Hallmark Communities served as general contractor for the project.
Notably, the broader hospital repositioning is still ongoing. A joint venture including Mirka Investments plans to develop a 90-unit senior housing property across the street from The Grand at Palomar Heights. Construction on the $43.6 million project is scheduled to begin in February 2027, a staff report by the California tax credit allocation committee reveals.
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The Grand, previously named Marlowe Palomar Heights, marked Greystar’s first Marlowe-branded community across California. Floorplans consist of one- to three-bedroom layouts across traditional apartments and townhomes that range between 628 and 2,003 square feet. Amenities include a gym, a swimming pool, a clubroom and coworking spaces, among other features.
Located at 101 Chamomile Glen, The Grand is roughly 2 miles from the interchange between Interstate 15 and Ronald Packard Parkway. The Escondido Village shopping center, which was the Golden State’s first fully air-conditioned mall when it opened in 1964, is within walking distance.
Downtown Escondido multifamily investment spikes
Following the investment peak of 2021-2022, the downtown Escondido submarket has been mostly dormant until 2026. This year, three other deals closed within three miles of The Grand, including the sale of the 326-unit age-restricted Hendrix for $94.7 million and the $67.8 million trade of Hadley, another senior housing community encompassing 225 units, Yardi Matrix shows.
Buoyant investor sentiment extended to the broader San Diego market with $5.5 billion in sales recorded across the trailing twelve-month period ending in September, according to a Matthews report. This marked a 68 percent increase over the previous comparable period.
Mesirow is among the largest U.S. apartment owners, having acquired 27,400 units across 90 investments as of October 2026, according to the company’s website. The firm closed its fifth Financial Real Estate Value Fund at $1.2 billion fund last year, marking a 66 percent increase compared to the previous investment vehicle.
