JV Acquires Massive San Diego-Area TOD
- Aug 09, 2018
A joint venture between TruAmerica Multifamily and Intercontinental Real Estate Corp. has acquired the leasehold interest in Alterra & Pravada at Grossmont Station, a 527-unit transit-oriented development in La Mesa, Calif., from Fairfield Grossmont Trolley LLC in partnership with the Metropolitan Transit Authority.
“The seller has been an excellent steward of the property,” Matt Ferrari, TruAmerica’s senior managing director, acquisitions, told MHN. “Alterra & Pravada is certainly the best located multifamily community is La Mesa. While the community is still relatively new, the unit interiors haven’t been updated since it was developed late last cycle.”
Originally built in 2010 by the seller, Alterra & Pravada at Grossmont Station offers one- and two-bedroom units in six four-story buildings. The property is LEED Gold certified and 15 percent of the units are reserved for moderate and very low wage earners.
Alterra & Pravada at Grossmont Station is situated immediately adjacent to the Grossmont Transit Center and is just 11 miles from downtown San Diego. The property is the largest of the 23 transit-oriented developments in the county, served by both the Orange and Green Lines of the San Diego Trolley and Metropolitan Transit Center bus lines.
The asset is also walking distance to the popular Grossmont Shopping Center, which contains more than a million square feet of retail shops and restaurants, and the Sharp Grossmont Hospital.
The new buyers are planning a capital improvement program that will include upgrading the property’s two clubhouses, two pools and pool decks.
“We believe we can add additional value by undertaking a modest refresh of the unit interiors and update some of the common area amenities to make it even more appealing to today’s renter,” Ferrari said.
An exterior renovation program will also consist of upgrading the landscaping and paint.
CBRE’s Kevin Mulhern, Rachel Parson, Stewart Weston and John Montakab represented both parties in the transaction.
TruAmerica and Intercontinental have teamed on seven properties overall and own more than 2,200 units together with properties also in California and Washington. TruAmerica San Diego portfolio now totals more than 1,600 units.
In July, TruAmerica sold Solis at Flamingo, a 524-unit multifamily community in East Las Vegas. A month earlier, TruAmerica in a joint venture with funds managed by Oaktree Capital Management LP, purchased a pair of multifamily assets in separate transactions totaling $142.1 million. One property is in the greater Phoenix, area, the other in metropolitan Las Vegas.