San Diego Multifamily Wrap-Up – September 2020
Sudberry Properties completes Mission Valley development. Partnership lands $103.5 million for 480-unit project. Catch up with our September selection of San Diego must-reads.
As the pace of new confirmed COVID-19 cases slowed through September, San Diego emerged resilient, taking measures to limit the spread and effects of the pandemic. Nevertheless, the county is still marked under the second tier of risk, and local authorities remained wary about further plans to reopen businesses. The multifamily sector remained active last month, with some new developments and property management changes. Read our September selection of San Diego must-knows:
1. FINANCING – Partnership secures $103.5 million project financing.
MetLife Investment Management, Allstate and Ryan Cos. arranged the construction loan for the 480-unit, 512,000-square-foot project within Meridian Development’s 210-acre Millenia community. The development will be part of Allstate’s investment portfolio. City National Bank, Vectra Bank Colorado and MidFirst Bank are co-lenders for the project, which will also include retail space. Millenia is located in Chula Vista, within 6 miles of Interstate 805.
2. DEAL – Cityview sells Little Italy community for $70 million.
An affiliate of R&V Management acquired AV8, a 129-unit property located at 2175 Kettner Blvd. CBRE arranged a 10-year, $43 million acquisition loan through Cigna. Built in 2018, the community comprises studio, one- and two-bedroom units as well as penthouses. Common-area amenities include rooftop cabanas, a clubroom, a pool table and a fitness center. CBRE’s financing team included Executive Vice Presidents Bill Chiles and Scott Peterson, along with Vice President Brian Cruz.
3. OPERATIONS – Sunrise Management takes over luxury portfolio operations.
A.L. Group had recently acquired Park + Polk and The Fort for $45 million. Both assets were developed and previously owned by architect Jonathan Segal. Built in 2017, Park + Polk comprises 55 units and 3,430 square feet of retail space. The asset is located at 4075 Park Blvd. The Fort, built in 2018 and located at 1011 Fort Stockton Drive, has 29 units and 3,600 square feet of commercial space.
4. DEVELOPMENT – Sudberry Properties completes Mission Valley development.
Purl is a 434-unit community located at 7901 Civita Blvd. within the 230-acre Civita urban village. According to RENTV, the luxury asset comprises one-, two- and three-bedroom apartments, each equipped with washer/dryer units and gourmet kitchens. Purl is across the street from the 14.3-acre Civita Park and is adjacent to the future, 1.5-acre Creekside Park. The development team for the asset included KTGY Architecture + Planning, Rick Engineering and Design Tec Interior Design. ReyLenn Construction acted as the general contractor, and Pacific Western Bank provided construction financing.
5. FINANCING – Hotel repurposing gets $37.7 million in state funds.
According to San Diego Metro, Governor Gavin Newsom approved the financing through Project Homekey. The proposal includes acquiring the Residence Inn Hotel Circle and Residence Inn Kearny Mesa to create more than 330 rental units for homeless people. The final proposal for the hotels’ purchase will be presented to the San Diego City Council in October.