San Diego Multifamily Wrap-Up – October 2020
Kearny Mesa property trades for $107 million. Affordable housing project lands $50 million financing. Catch up with our October selection of San Diego must-reads.
San Diego fared relatively well in October, buoyed by a life sciences boom amid growth in the metro’s defense sector. The city’s multifamily market kept active at the same time, with a number of major investment transactions closing. Affordable housing construction also began to pick up, as developers secured financing for a number of notable projects. Read our October list of San Diego must-knows:
1. DEAL – Kearny Mesa property trades for $107 million.
Prime Residential acquired Agave Ridge, a 369-unit townhome community, from Goldrich & Kest. CBRE represented the seller. The 368,575-square-foot asset comprises two- and three-bedroom units. The apartments have air conditioning, large balconies or patios and stackable washer/dryers. Agave Ridge also includes five swimming pools. Located at 7901 Harmarsh St., the community is just south of the I-805 and SR 163 interchange, adjacent to Sharp Hospital and Rady Children’s Hospital.
2. FINANCING – Affordable housing development gets $50 million financing.
Monarch Private Capital closed on the low-income housing tax credit equity for Valencia Pointe, a 102-unit property for families earning between 40 and 80 percent of the area median income. Monarch is working with CRP Affordable Housing & Community Development on the project, and Hunt Capital Partners secured the financing. Located at 5930 Division St., the site is approximately 6 miles east of downtown. Completion is scheduled for 2022.
3. DEAL – Wood Partners sells luxury community in Little Italy.
According to public records, TA Realty acquired Valentina by Alta, a 110-unit asset for $78 million. Walker & Dunlop served as broker and advisor for the seller. Built in 2019, the property comprises studio, one- and two-bedroom units, ranging from 537 to 1,604 square feet. Common-area amenities include a fitness center, a swimming pool, a clubhouse and bike storage. Located at 1919 Pacific Highway, Valentina is a short distance north of downtown San Diego.
4. FINANCING – Eco-friendly community scores $10.2 million refi.
JLL Capital Markets arranged the 10-year, fixed-rate Fannie Mae Green loan, on behalf of Nakhshab Development & Design. Truax Lofts is a newly constructed building with 26 apartments, and the neighboring Truax House is a historic residence renovated to encompass 10 units. Initially built in 1912, the borrower restored the structure with sustainable materials and added solar panels. Located at at 2517 Union St. and 598 W. Laurel St. within the Bankers Hill neighborhood, the property is 1 mile from downtown San Diego.
5. FINANCING – Holland Partners gets $24 million affordable housing financing.
The Housing Authority of the City of San Diego provided the funding through variable-interest revenue bonds, with U.S. Bank as trustee. According to Yardi Matrix, Courthouse Commons is an 82-unit development, set to comprise studio, one-, two- and three-bedroom units. Planned amenities include a swimming pool and spa. Located at 220 W. Broadway, the 4-acre site is within 3 miles of San Diego International Airport. Construction is anticipated to begin before the end of the year.