TruAmerica JV Acquires $90M San Diego Community
- Aug 08, 2017
In a partnership with Allstate, TruAmerica Multifamily acquired its largest investment in San Diego County with the purchase of the Eagles Point apartment community in Escondido, Calif., for $90 million.
Located at 1501 East Grand Ave., the 519-unit Eagles Point comprises studio, one- and two-bedroom floorplans ranging from 440 to 995 square feet. Interior features include a breakfast bar, carpet and vinyl flooring throughout, central air in the two-bedroom units, fully equipped kitchens, storage closets on the balconies and ceiling fans. Residents have access to amenities such as two swimming pools, a tennis court, two spas, on-site laundry, a community room and 1,000 parking spaces. The community is pet friendly and features six, three- and four-story buildings.
“We are well acquainted with the San Diego market as we already own and operate four properties here,” Greg Campbell, TruAmerica’s senior managing director of acquisitions and dispositions, told Multi-Housing News. “By leveraging economies of scale and our existing operational experience here in San Diego, we can make significant improvements to the property, keep rents relatively affordable and still generate attractive risk adjusted returns for TruAmerica and our investors.”
Eagles Point will undergo TruAmerica’s largest renovation plan in company history, which will include refurbishing all interiors, upgrading the two pools and spas, tennis courts and clubhouse. The company will also be building a fitness center into the existing clubhouse.
Escondido is one of the fastest growing cities in North San Diego County. Over the past five years, its population has grown by 6.3 percent and is projected to grow by an additional 5.4 percent by 2021, according to FastReport. With fewer than 14,000 rental units and only two projects totaling 275 units in the construction pipeline, the city’s multifamily inventory is not close to keeping pace with its growth, according to Campbell. “Demand has far exceeded supply in Escondido, driving vacancy rates to a little more than one percent. Most of the current inventory in the area is older and lacks the amenities desired by today’s renter.”
The community can be found across the street from the Walmart-anchored Vineyard Square Shopping Center and close to Highway 78 and Interstate 15, which offers easy access to downtown San Diego, Carlsbad and Oceanside. Troy Tegeler of the Newport Beach CBRE team arranged the project financing through Fannie Mae and Kevin Mulhern, Rachel Parsons and Dixie Hall of the San Diego CBRE team marketed the property on behalf of the seller. Allstate has acquired more than 7,600 units through its partnership with TruAmerica.
Image courtesy of TruAmerica