Sares Regis has acquired the 344-unit Bella Posta community near San Diego from the asset’s original developer. The firm took an $80 million senior loan, originated by Invesco Real Estate, to fund both the purchase and future redevelopment plans for the property.
Located at 10343 San Diego Mission Road in Mission Valley, the asset is positioned alongside the Escondido Freeway near its intersection with Interstate 8, providing access to downtown San Diego, nine miles away. Various shopping and dining options are situated in the immediate area, and the city’s SDCCU Stadium sits half a mile west.
Capital improvement plans
The new owner’s planned renovations include significant updates to unit interiors along with upgrades to common areas, building exteriors and on-site amenities. The property’s four mid-rise structures, built in 1979, offer a mix of one- and two-bedroom units, ranging in size from 700 to 1,100 square feet. Community amenities include two swimming pools and spas, laundry facilities, a fitness center, a tennis court and a racquetball court. The asset’s occupancy rate is 98 percent, according to Yardi Matrix data from March 2018.
“This origination demonstrates our ability to source, structure and close senior loans within the multi-family space, on behalf of our debt platform, which is targeting attractive risk-adjusted returns, focused on income through US commercial real estate loan originations with strong credit profiles,” said Bert Crouch, managing director of structured investments with Invesco, in a prepared statement.
Images courtesy of Yardi Matrix