San Diego Community Lands $188M

Completed in 2021, the community is 95 percent occupied.

Sunroad Enterprises has secured a $188 million five-year, fixed-rate loan for its Vive Luxe, a 442-unit community in San Diego. Situated nine miles north of downtown in the Kearny Mesa submarket, the community is located at 4890 Sunroad Centrum Lane.

The five-story Class-A property, completed in 2021, is 95 percent occupied. Vive Luxe includes one-, two- and three-bedroom apartments ranging from 726 to 1,122 square feet. It features 23 affordable homes.

In-unit amenities include stainless steel appliances, gourmet kitchens, quartz countertops and open concept living spaces. The community features a pool, spa, fitness center, wine lounge, sky deck and an ocean lounge.

JLL Capital Market’s Debt Advisory team, which represented the borrower, was led by Senior Managing Directors Aldon Cole, Tim Wright, and Vice President Bharat Madan. Accounts managed by KKR originated the funds.

San Diego multifamily thrives

Despite having some of the strongest fundamentals in the U.S., the San Diego multifamily market decelerated in the third quarter of 2024, Yardi Matrix data shows. Advertised asking rents were down 0.2 percent on a trailing three-month basis through September, yet still remained high above the national average. Occupancy rates also declined 40 basis points year-over-year, but still stood more than 1 percentage point higher than the 94.8 percent U.S. figure.

“San Diego’s multifamily thrives due to its strong job market in high-growth sectors like technology and life sciences, attracting a skilled workforce, while persistent barriers to homeownership keep even top earners in the rental pool longer, sustaining demand for quality multifamily housing” Kip Malo, JLL managing director for sales advisory in San Diego, told Multi-Housing News.

Malo noted that high barriers to entry in San Diego, paired with limited available land, continue to put strain on an already constrained housing market. As a result, rent growth continues to grow, maintaining its spot as one of the strongest in the nation.

“These fundamentals, combined with the appeal to both young professionals and families, have propelled San Diego to become the third most active market in the US for major multifamily deals exceeding $150 million in 2024, underscoring its attractiveness to investors and developers,” he said.