OliverMcMillan, Capri Capital Start 208-Unit M-F Project in East Village Arts District

By Alex Girda, Associate Editor

Capri Capital Partners and OliverMcMillan have launched construction of a new residential community in San Diego’s East Village Arts District. Dubbed The Lofts at 688 13th Street, the 208-unit project will be completed in about two years. It is among the latest examples of redevelopment sparked by PETCO Park, the nine-year-old home of the San Diego Padres.

Located on three quarters of a city block, the property will offer studio, one-bedroom and two-bedroom units. Ground level units will feature floor-to-ceiling glass, and will be separated from the sidewalk by gated terraces.

Upper level apartments will feature views of the city, the complex’s landscaped courtyard or both. Ground-level units that face toward the courtyard will have private patios. The complex will incorporate two 2,660-square-foot street-level retail spaces, and the developers will widen the section of the 13th Street sidewalk adjacent to the new building.

Highlights of resident amenities at The Lofts at 688 13th Street will be a roof deck offering architectural lighting, steel and wood trellises, lounge seating, fire pits and an enclosed pet area. Extensive common areas and a media lounge, as well as a Fully Fit Gym, will round out the common-area facilities.

Rendering: OliverMcMillan/Pappageorge Haymes Partners/AVRP Studios

Beech Street Closes $9.6M Fannie Mae Loan for El Cajon Property

By Alex Girda, Associate Editor

Beech Street Capital L.LC. has arranged $9.6 million in Fannie Mae financing for the acquisition of Bella Vista Apartments, a 150-unit affordable residential property in El Cajon.

The 10-year fixed-rate loan has 9.5 years of yield maintenance, one year of interest-only and a 30-year amortizing schedule.

Bella Vista Apartments comprises  two ten-story buildings. Resident amenities include a common swimming pool and a playground and laundry facilities. The property is convenient to metropolitan San Diego as well as Downtown El Cajon.  

Kristen Croxton and Greg Reed, Beech Street Capital executive vice presidents based in Newport Beach, originated the deal. Chris Hutchinson of Alcole Capital Group represented the buyer.

The property was the last real estate asset in California held by an unnamed institutional investor eager to divest its holdings in the area, Croxton explained. Beech Street also underwrote a welfare tax abatement to be secured by the borrower during the loan’s inaugural year.

Aimco Acquires Oceanfront M-F Complex in La Jolla for $29M

By Alex Girda, Associate Editor

In a $29 million deal, Aimco has acquired Prospect 400, a 60-unit oceanfront property in La Jolla. The Denver-based apartment REIT was identified as the property’s new owner by CoStar.

Jim Neill, Eric Comer and Merrick Matricardi of CBRE Group Inc.’s San Diego office arranged the transaction on behalf of the Carolyn M. Holmer Irrevocable Trust, the property’s seller. Prospect 400 was developed in 1970 on a parcel where the newspaper publisher and philanthropist F.W. Kellogg once owned a summer home. The complex was most recently renovated in 2010.

Prospect 400 offers 60 units, including 29 one-bedroom apartments, 24 two-bedroom units and seven studios. The property also features 10 resident garages, while the community’s amenity package offers access to a heated pool, an ocean-view sundeck, a hydrotherapy spa and a lounge equipped with a full kitchen, media niche, billiards table and restrooms.

The building traded at around $483,000 per unit, pricing considerably higher than San Diego’s median values for 2012, as estimated by Marcus & Millichap Real Estate Investment Services Inc. Price increases in the area have been sluggish during the past four years.

Photo credit: CBRE Group Inc.

Chart courtesy of Marcus & Millichap Real Estate Investment Services Inc. at marcusmillichap.com

Inland American Lodging Grabs Andaz San Diego for $53M

By Alex Girda, Associate Editor

Inland American Lodging Group, Inc. has added the Andaz San Diego to its portfolio in a $53 million deal. Operated by Hyatt, the 159-key property is located in the Gaslamp Quarter near the San Diego Convention Center, PETCO Park and San Diego Bay.

Seventeen of the guest rooms are suites. Amenities include 18,500 square feet of meeting space, a fitness facility, four restaurants, a heated pool and a rooftop lounge and deck.

Previously known as the Ivy Hotel, the property was rebranded Andaz San Diego in 2010. American Lodging Advisor Inc.’s president & CEO, Marcel Verbaas, commented: “This purchase aligns with our objective to acquire luxury, upper-upscale and urban upscale hotels in the top 25 lodging markets.” A 6,000-square-foot upscale Katsuya by Starck restaurant recently opened on the Andaz’ lower level.

Hyatt’s Andaz brand targets luxury boutique hotels in urban and resort locations. Each property draws its distinct design aesthetic from its surroundings.

Image courtesy of sandiego.andaz.hyatt.com

IDS, TIAA-CREF Pay $60M For Kearny Mesa Campus

By Alex Girda, Associate Editor

A joint venture of IDS Real Estate Group and TIAA-CREF recently completed the acquisition of Cabrillo Technology Center, a three-building, 285,585 square-foot corporate campus in Kearny Mesa, from Cabrillo Properties L.L.C., according to CoStar Group, which reported the price as $59.5 million.

The transaction was arranged by a team from CBRE Inc.’s San Diego office, including Louay Alsadek, Evan August, Brad Black and Andy Taylor. IDS Real Estate Group recently completed the purchase of a San Diego-area tech center.

Located on a 17-acre site on Balboa Ave., the campus consists of a building completed in 1963 and two others developed in 2000. One of the two newer buildings, 8690 Balboa Avenue, has earned LEED Silver certification as well as an Energy Star rating.

The facility is 96 percent leased to Raytheon and HDR Engineering. The facility was extensively renovated by Cabrillo Properties.

According to Matt Aminoff, vice president at IDS Real Estate’s San Diego office, “Cabrillo Technology Center was an opportunity to acquire quality infill real estate in the sought after submarket of Kearny Mesa well below replacement cost.”

Image courtesy of cbre.us