Mission Gorge Investors, controlled by R & V Management, has purchased a 374-unit luxury multifamily community in San Diego from Hanover Co. for $149 million. Berkadia arranged the deal for the property, Hanover Mission Gorge, on behalf of the seller.
Built in 2018, the property at 4440 Twain Ave. is nearly 82 percent occupied, according to Yardi Matrix data. The community features units ranging from studios to three-bedroom floor plans with modern finishes. The amenity package includes a pool with cabanas, 24-hour fitness center, clubhouse and NEST learning thermostats.
Hanover Mission Gorge is situated in the Grantville neighborhood northeast of downtown San Diego, nearby interstates 8, 15 and 805. The industrial area between Mission Valley and San Diego State University is becoming a hive of multifamily development, with more than 1,000 units of market-rate and affordable housing under construction or recently completed.
San Diego’s multifamily market is going strong, with investor demand supporting high prices and construction activity reaching its highest level in more than a decade. About 9,000 units are underway and 5,500 are expected to be delivered in 2019, according to a Yardi Matrix report.
Roughly $1.1 billion in multifamily deals closed in the metro area in 2018. Average cap rates for stabilized properties hover between 4 and 4.5 percent, among the lowest in the U.S.