Greystone Sells $41M San Diego Student Community

The Essential is adjacent to San Diego State University’s campus. Image courtesy of Yardi Matrix

Greystone Housing Impact Investors has sold Suites on Paseo—also known as The Essential—, a 384-bed student community in San Diego. An affiliate of San Diego State University purchased the property for some $40.7 million, which included the accelerated master lease payments.

The seller acquired a tax-exempt mortgage revenue bond secured by the asset in 2013. Two years later, the partnership obtained the ownership of the property via a deed in lieu of foreclosure.

The 2013-completed student housing property encompasses three three- and four-story buildings. The fully furnished apartments feature one-bedroom layouts with in-unit bathrooms, ranging between 173 and 300 square feet. Common-area amenities include a fitness center, multiple lounge areas, community kitchen, laundry rooms, courtyards, hot tubs, an outdoor game center and tanning beds, as well as a movie theater. The 1-acre property also comprises more than 110 parking spaces.

Located at 5595 Lindo Paseo, the community is within walking distance of San Diego State University and Viejas Arena. Grossmont Center and Marketplace at The Grove shopping malls are within 5 miles, while downtown San Diego and San Diego International Airport are some 11 miles southwest.

Notable projects in the market include University of California San Diego’s Triton Center and Ridge Walk North Living, two student developments worth $1.1 billion in La Jolla, Calif. The latter is expected to comprise 2,400 beds, 19 classrooms and a 150-seat lecture hall.