MG Properties Pays $116M for San Diego Asset
The property last traded in 2016 for $93.8 million.
Northwestern Mutual has sold Pulse Millenia, a 273-unit multifamily property in Chula Vista, Calif., for $116 million. MG Properties purchased the Class A asset, as reported by Commercial Real Estate Direct. JLL arranged a seven-year, $71.8 million Freddie Mac acquisition loan for the buyer and represented the seller. The community previously traded in 2016 for $93.8 million, according to Yardi Matrix data.
Completed in 2016, the property encompasses three buildings with one-, two- and three-bedroom floorplans ranging between 718 and 1,371 square feet. It was the first community delivered at the $4 billion Millenia master-planned development within Otay Ranch, which includes more than 3,000 residences and 200 retail options, as well as multiple parks.
Apartments feature in-unit washers and dryers, walk-in closets and central air conditioning. Common-area amenities include a 24-hour fitness center, swimming pool, media area, coworking lounge and barbecue pavilion.
Located at 2043 Artisan Way, Pulse Millenia is roughly 20 miles south of San Diego and some 7 miles from the Mexico Border, adjacent to the Otay Ranch Town Center Shopping Mall. The 9-acre property is also 10 miles from downtown Chula Vista and 8 miles from the Brown Field Municipal Airport.
JLL Managing Director Kip Malo led the Investment Sales Advisory Team that represented Northwestern Mutual in the transaction. The firm’s Executive Director Charles Halladay and Senior Director Rick Salinas, along with Managing Directors Annie Rice and Brandon Smith, led the Debt Advisory Team that arranged the acquisition financing.
San Diego investment volume drops
In 2023’s first three quarters, only six multifamily transactions for properties exceeding 50 units closed in the San Diego area for a combined $444 million, down 68.9 percent from the same period of the previous year, according to a recent Yardi Matrix report.
During the 12 months ending in September, the largest investment sale in the metro involved a 379-unit multifamily community in San Diego, the same source shows. A joint venture between MG Properties and Rockwood Capital acquired the asset.