Sares Regis Pays $96M for San Diego Asset
Part of the acquisition loan will go toward upgrading the downtown property.
Sares Regis Group has acquired AVA Cortez Hill, a 299-unit multifamily property in San Diego, from AvalonBay. The community traded for $95.9 million, public records show. The buyer is rebranding the high-rise as LIT Cortez Hill. The 1973-built community has also been known as Avalon at Cortez Hill and Cabrillo Square Town Club.
PCCP LLC has provided a $76 million senior loan for the acquisition. According to PCCP Senior Vice President Michael Johnson, part of the funding will go toward upgrading the property.
The 15-story property at 1399 Ninth Ave. includes 1,670 square feet of ground-floor retail. The community offers a mix of studio, one- and two-bedroom apartments with private patios or balconies across nine different floorplans averaging 771 square feet. The pet-friendly property includes a swimming pool, a spa, a sundeck lounge and barbecue grill stations as well as basketball and tennis courts. Indoor amenities include a fitness center, a resident lounge and several laundry rooms.
The property is situated in the Cortez Hill downtown neighborhood, within walking distance of Balboa Park and very close to both Interstate 5 and State Route 163. San Diego International Airport is within a 3-mile drive.
In March, PCCP partnered with the California State Teachers’ Retirement System on targeting single-family rentals, a rapidly growing segment. The joint venture has an initial purchasing power of $1 billion.