San Diego-Area Community Commands $168M

Buyer HomeFed Corp. plans to convert the 519-unit property into middle-income affordable housing.

Solana at Grand. Image courtesy of CBRE

HomeFed Corp. has bought the 519-unit Solana at Grand in Escondido, Calif., for $167.5 million. TruAmerica Multifamily was the seller. CBRE brokered the sale on behalf of the buyer, which plans to convert the asset to a middle-income affordable housing community.

TruAmerica bought the property in July 2017 for $90 million. Following that acquisition, the investor repositioned the asset through extensive interior and exterior renovations.

The community, formerly known as Eagles Point, offers a mix of one- and two-bedroom units ranging from 440 to 995 square feet, according to Yardi Matrix data. Community amenities include a fitness center, spa, clubhouse and grilling area. Two pools and laundry facilities are also available, along with 1,000 grade-level parking spaces.

Located at 1501 E. Grand Ave., the community is just south of the Valley Parkway retail corridor. San Diego Safari Park is 5 miles southeast, and central Escondido is less than 2 miles west.

The new owner’s conversion plans will utilize a JPA structure with the California Municipal Finance Authority and the City of Escondido. CBRE Senior Vice President Kevin Mulhern, who facilitated the transaction, said in prepared remarks that HomeFed Corp. will lower rents to keep the property affordable to middle-income residents earning between 61 and 120 percent of San Diego County’s area median income.

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