Berkadia Closes Largest San Diego Apartment Transaction
American Assets Trust acquired Pacific Ridge, a $232 million luxury community that includes 533 units and is 95 percent occupied.
American Assets Trust Inc. acquired the Pacific Ridge luxury community in San Diego for $232 million. Berkadia’s Managing Directors Ed Rosen and John Chu, as well as Directors Kyle Pinkalla and Erin Dammen, completed the property’s sale on behalf of Carmel Partners. This sale is one of the county’s largest apartment transactions to date.
Located at 5945 Linda Vista Road, the community was built in 2013 and offers 533 units with studio, one-, two- and three-bedroom floorplans ranging from 680 to 1,574 square feet. Situated on more than 15 acres, the 94.6 percent occupied apartments feature two distinct color palette options, solid wood cabinetry, quartz countertops, wood-style flooring, stainless steel appliances, pendant accent lighting, washer/dryers, vaulted ceilings, private balcony/patios and expansive windows with ocean views. Residents of Pacific Ridge will have access to amenities such as a lap pool with private cabanas, a spa retreat, a European-inspired wine bar with fireside living room, a gourmet demonstration kitchen, a club-level fitness center, an outdoor yoga deck, a bocce ball court, jogging trail, dog walk, a digital cafe, study lounge, coffee bar, a hilltop park and recreation area, a tanning studio, an outdoor grill, dining pavilions and an entertainment lounge with a television, bar, pool tables and shuffleboard.
“Renters seek desirable proprieties that are close to the beach, and they are willing to live with less disposable income to gain a better quality of life,” Rosen told Multi-Housing News. “Investors recognize the attractiveness and irreplaceability of assets such as Pacific Ridge, and those who already own or operate them typically do so for the long term. Since there’s more demand than supply, concern of a crashing market doesn’t exist.”
Berkadia reports metro San Diego has the third-lowest unemployment rate among major metro areas in California, behind only San Francisco-Oakland and San Jose-Santa Clara.
“The metro unemployment rate was 4.3 percent at the end of January, which was 60 basis points below the rate recorded during the same time period in 2016, and it was also 80 basis points below the California rate,” said Chu. “Strong employment and apartment fundamentals help fuel a steady market.”
Images courtesy of Pacific Ridge