Toll Brothers, PGIM Partner on San Diego Development
The 37-story project received a $187 million construction loan from Wells Fargo and BNY Mellon.
Toll Brothers Inc. has formed a joint venture with PGIM Real Estate to develop a new multifamily community in San Diego. The Lindley will be a 37-story, 422-unit luxury build. A collaboration between the PGIM Real Estate capital markets team and Toll Brother’s finance department secured a $187 million construction loan facility from Wells Fargo and BNY Mellon.
Designed by Joseph Wong Design Associates, the property aims to earn a LEED Gold Certification. The site will use sustainable materials, all demolition materials are set to be recycled and rainwater will be passed through biofiltration before entering drainage systems. EV fast charging stations are also included in the building plans.
Located in San Diego’s Columbia business district, the Lindley will be on the corner of Columbia and Ash Streets. Residents will be in proximity to Little Italy, PETCO Park, Balboa Park, the rail station, San Diego International Airport and the Gaslamp Quarter.
Individual units will feature keyless entry, LED lighting and smart thermostats. Community amenities will include an outdoor pool, spa and fitness center, massage rooms, yoga spaces, coworking rooms, lounge and game rooms, sky deck and a wine bar. The asset is set to be Class A.
The Lindley is the first Toll Brothers Apartment Living (TBAL) project in San Diego and third in overall California. A 262-unit property sold in Orange last year, while another community with 218 apartments in Rafferty is set to be completed in early 2024. The Lindley is the fifth high-rise apartment community developed by the joint venture. Others are located in Boston; Cambridge, Mass.; Atlanta and Washington D.C.
“With a robust portfolio of multifamily developments in urban and suburban markets across the country, Toll Brothers Apartment Living builds all its rental communities in similar capital-efficient joint ventures with equity partners, many with whom we’ve undertaken multiple projects together,” Charles Elliott, President of Toll Brothers Apartment Living, told Multi-Housing News.
The Lindley is scheduled for completion by late 2024.
San Diego Housing Demand
Per the entitlement agreement for the Lindley, TBAL will be making contributions towards affordable housing in San Diego. The firm will support 44 off-site units also located in downtown. According to Times of San Diego, the market ranks the top of the nation for the most unaffordable. Some contributing factors include an expensive permitting process as well as landlords removing their properties from the market and limiting housing supply.
Only 911 apartments came onto the market in San Diego from year-to-date through April. At the beginning of the second quarter 8,445 units were underway, however this still falls under supply demand.