Multifamily Joint Venture Acquires $90 Million San Diego Community

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The Editors's picture
Multifamily joint venture acquires san diego apartments

A Los Angeles-based multifamily joint venture firm has bought 519-unit Eagles Point apartments in Escondido for $90 million with plans to upgrade the property, according to a release.

Allstate Insurance, in a multifamily joint venture with TruAmerica Multifamily, made the acquisition, according to a release.

Escondido is one of the fastest growing cities in North San Diego County. Over the past five years, its population has grown by 6.3% percent and is projected to grow by an additional 5.4% by 2021, according to FastReport.

With fewer than 14,000 rental units and only two projects totaling 275 units in the construction pipeline, the city’s multifamily inventory is not close to keeping pace with its tremendous growth, according to Greg Campbell, TruAmerica’s Senior Managing Director of Acquisitions and Dispositions.

“Demand has far exceeded supply in Escondido driving vacancy rates to a little more than one percent,” Campbell said in the release. “And most of the current inventory in the area is older and lacks the amenities desired by today’s renter.”

Eagles Point includes studio, one-, two- and three-bedroom apartments that have not been updated since they were built in 1985.

The complex at 1501 E. Grand Ave. includes studios, one- and two bedroom units , two pools and spas and tennis courts. The current rents range from $1,165 to $1,670, according to the San Diego Union-Tribune. Renamed Solana at Grand, the 21.6-acre project is located across the street from Vineyard Square shopping center.

“The property has great infrastructure but lacked the reinvestment to make it relevant in today’s market,” added Campbell.

Multifamily joint venture renovation plan

TruAmerica will invest significant capital to improve the property. The renovation plan — the largest in company history — includes refurbishing all interior units and upgrading the property’s two pools and spas, tennis courts, and clubhouse. Plans also call for a new fitness center to be incorporated in the existing clubhouse.

“With 1,600 units in our San Diego portfolio, we will be able to take advantage of economies of scale and in-house construction management expertise to transform Eagles Point into one of the most attractive communities in the submarket, and still keep rents in line for working families and individuals in the North County,” Campbell said in the release.

Eagles Point benefits from being located across the street from the Walmart-anchored Vineyard Square Shopping Center, one of the major retail centers in Escondido. The property also is served by nearby Highway 78 and Interstate 15, providing easy access to downtown San Diego as well as the coastal communities of Carlsbad and Oceanside.

Allstate has now acquired more than 7,600 units through its multifamily oint venture with TruAmerica.

“We are excited to partner with TruAmerica on another terrific addition to our real estate portfolio. We believe assets like Eagles Point are both a great investment and a great way to support the community with high-quality yet affordable housing,” Michael Moran, Vice President and head of Real Estate Investments at Allstate, said in the release

Troy Tegeler’s Newport Beach-based CBRE team arranged the multifamily joint venture project financing through Fannie Mae. CBRE’s San Diego-based team of Kevin Mulhern, Rachel Parsons and Dixie Hall marketed the property on behalf of the seller.

San Diego Home Affordability Declines As Prices Reach Record Highs

Ten-X, the nation's leading online real estate transaction marketplace, has released its First Quarter 2017 Economic and Single-Family Housing Market Outlook Report for San Diego, California, which reveals home prices have surpassed their pre-recession levels but are pushing affordability further out of reach.

The region's homeownership rate improved more than 700 basis points from one year ago to 58.1 percent, yet remains nearly 400 basis points below the U.S. rate, according to a release.

Local apartment rentals becoming more affordable

"Home prices in the San Diego area have finally eclipsed pre-recession levels, but for most residents, renting has become much more affordable than buying a home," Ten-X Executive Vice President Rick Sharga said in the release.

"With higher prices and tight inventory, single family home affordability in the San Diego area is at its lowest level since 2008. Local apartment rentals are now decisively more affordable. Meanwhile, we see little relief coming soon through housing starts, which are up less than 2 percent from a year ago," Sharga said.

 "While home sales dropped slightly in the first quarter, they have steadily increased since 2012 in the metro region and have led the U.S. in year-over-year gains. Meanwhile, San Diego's economic expansion is softening, although the unemployment rate remains well below the national average."

Existing home sales in San Diego edged higher in Q1 to a seasonally adjusted annual rate (SAAR) of more than 40,562, a 3.0 percent gain from last year but below the U.S. average increase of 4.6 percent. Inventory of homes for sale in San Diego dropped 25.4 percent from a year ago to a seasonally adjusted rate of 5,222.

The metro's new construction segment is still struggling to recover from a steep recessionary fall. Housing completions fell 16.2 percent year-over-year, although they remain 40.2 percent higher than the previous recessionary low. Housing starts increased 1.7 percent year-over-year, but remain well below prior cyclical levels.

San Diego home prices continue to grow with a 6.4 percent year-over-year gain, which is slightly above the U.S. pace. The median home price in the first quarter was $541,171, surpassing pre-recession peaks. However, price increases have slowed in recent quarters.

San Diego economic and demographic fundamentals

San Diego's economic expansion softened over the past year but remains solid. Unemployment stood at 3.8 percent, below the U.S. rate, while annual job growth cooled from 3 percent to the 1.5 percent range. Despite seeing slower growth in the metro's crucial professional and business services and leisure/hospitality sectors, public employment—the region's largest job sector—continued to expand, with jobs up 2.5 percent year-over-year.

San Diego added 27,504 residents in 2016 to account for a 0.8 percent year-over-year increase, slightly above the U.S. growth rate. Most of the metro's population growth stems from natural increases. San Diego's substantial international in-migration was diluted by heavy domestic outflows, bringing total net migration to just over 6,000. San Diego's population is relatively young. Residents between 25 to 44 years old comprise the region's largest demographic, while there is a higher percentage of residents between 18 and 24 years of age compared to the national average.

About Ten-X

Ten-X is the nation's leading online real estate transaction marketplace and the parent to Ten-X Homes, Ten-X Commercial and To date, the company has sold 292,000+ residential and commercial properties totaling almost $48 billion. Leveraging desktop and mobile technology, Ten-X allows people to safely and easily complete real estate transactions online. Ten-X is headquartered in Irvine and Silicon Valley, Calif., and has offices in key markets nationwide. Investors in the company include CapitalG (formerly Google Capital) and Stone Point Capital. For more information, visit

About TruAmerica Multifamily

TruAmerica Multifamily is a vertically integrated, value-add multifamily investment firm based in Los Angeles. Founded in July 2013 as a joint venture between Robert Hart and The Guardian Life Insurance Company of America, TruAmerica has been one of the country’s most active multifamily investors and manages a $6.7 billion portfolio of approximately 32,000 units across prime locations throughout Northern and Southern California, Washington, Oregon, Colorado, Arizona, Nevada, Utah, Maryland and Florida. For more information on TruAmerica Multifamily, visit or call (424) 325-2750.

About Allstate

The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines insurer, protecting approximately 16 million households from life’s uncertainties. Allstate’s real estate investments group has decades of experience and looks for core and value-add opportunities across geographies in the United States and internationally, and in a range of investment vehicles, such as funds, co-investments and joint ventures. Allstate’s real estate investments include retail, multi-family, office and industrial properties. For more information on the company’s investments focus, visit

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