San Diego Multifamily Wrap-Up – April 2020

Workforce portfolio gets $59 million refi. Escondido asset sells for $35 million. Catch up on our April selection of San Diego must-reads.
Sage Apartments. Image courtesy of Colliers International

San Diego’s multifamily sector saw fairly healthy investment activity in April even amidst the coronavirus pandemic, with major brokerages closing deals across the metro. California’s eviction moratorium runs through the end of May, as do similar local ordinances, both for multifamily and commercial tenants, though some lockdown restrictions may begin to ease in the coming weeks. Read our April list of San Diego must-knows: 

1. DEAL – Colliers brokers 137-unit Escondido community sale.

A private investor paid $34.7 million to Clear Sky Capital for Sage Apartments. The brokerage represented the seller. Located at 1920 and 1960 E. Grand Ave., the community consists of 14 two-story buildings. The asset last traded in 2017 as part of a $38.6 million, three-property portfolio deal.

2. DEAL – 12-property portfolio trades for $24 million.

Marcus & Millichap represented the seller and procured the buyer in the $23.8 million deal. The new owner plans to fully rehabilitate the properties, which total 96 units. The largest community involved in the deal is a 23-unit structure at 1747 Fifth Ave. All the portfolio’s assets are located in the Bankers Hill and Golden Hill neighborhoods, a short distance from central San Diego. 

3. FINANCING – JLL closes $59 million workforce housing refi.

A partnership between Real Asymmetry and Constellation Realty Management took the financing for a five-property, 328-unit portfolio. Union Bank originated the 10-year, fixed-rate mortgage. The financing pays down, among others, a $24 million loan taken in 2017 for the acquisition of the largest of the five communities. The assets came online between 1976 and 1987 and have recently updated units.

4. DEAL – Chula Vista community trades for $20.7 million.

According to San Diego Business Journal, North Star Homes acquired the 129-unit Royal Apartments from Vista Park Way. The property at 511-533 Park Way has one-bedroom, 418-square-foot units and is within 8 miles of downtown San Diego. South Coast Commercial’s Benn Vogelsang acted on behalf of the seller.