San Diego’s multifamily market pushed ahead, strong and steady, through the month of February. Development work has moved forward on a number of notable projects, including one which scored construction financing earlier in the month. Investment activity started the year at a slow pace, though buyers continue to target strong value-add opportunities. Here’s our selection of the most notable industry news from the past month:
1. FINANCING – Hillcrest project lands $43 million loan.
Greystar and Cigna Investment Management closed on the financing package for the development of 111-unit Hillcrest 111. CBRE arranged the loan through City National Bank. Plans for the seven-story building at 635 Robinson Ave. call for 3,200 square feet of ground-floor retail and three levels of subterranean parking.
2. DEAL – Horizon Capital Management buys Escondido portfolio.
SHS Development Corp. sold the 39-unit Olive Tree Apartments and the 54-unit Juniper Apartments for a total price of $19.7 million, according to San Diego Business Journal. The new owner plans to begin capital improvements at the two properties located at 900 E. Mission Ave. and 406-414 N. Juniper St. Marcus & Millichap represented both the buyer and seller.
3. DEAL – CBRE closes City Heights, La Jolla deals.
Allen Chitayat and Nate Pepper represented both parties in the $3.1 million disposition of a 17-unit City Heights community at 4330-4336 Estrella Ave. to Verada Properties. CBRE’s John Newtown and Erik Anderson worked with the seller in its divestment from an 8-unit property at 7342 Girard Ave. in La Jolla. That property also traded for $3.1 million.
BONUS READ: MHN’s own Therese Fitzgerald reported from the Mortgage Bankers Association’s CREF/Multifamily Housing Convention & Expo, which took place in San Diego last month. MBA’s chief economist projected a year of slow GDP growth amidst increasing uncertainty, all of which has the potential to impact multifamily lending practices. Read more about it here.