SAN DIEGO-Security Properties Inc. paid $22 million for Entrada, a 172-unit apartment property located at 453 13th St. in downtown San Diego. The seller, SRM Development LLC, constructed the project in 2004.
Kevin Mulhern, Dixie Hall and Rachel Hemingway of CB Richard Ellis Inc. represented the seller. Security Properties Inc. represented itself. Mulhern tells GlobeSt.com that there were multiple offers for the property.
Located in downtown San Diego’s East Village neighborhood, the apartment property includes a fitness center, business center, conference room and rooftop terrace with panoramic views. Security Properties plans some capital improvements for the property, including: renovating the leasing office and roof top common area; and implementing a vibrant exterior paint scheme.
Entrada’s unit mix includes 126 studios; 36 one-bedroom, one-bathroom units; five two-bedroom, two-bathroom units; three three-bedroom, two bathroom units; one live-work unit and one loft. The project has 40 units set aside for low and moderate-income residents.
Security Properties Inc. capitalized the acquisition by assuming an existing conduit loan and assumed a modified loan from Centre City Development Corp. CCDC provided the original developer with $3.5 million of equity to construct the complex in exchange for providing 40 affordable units as part of the project.
David Dufenhorst, managing director at Security Properties, is excited not only to re-enter the San Diego marketplace but to further build upon an institutional equity partner relationship that started in early 2008 with the purchase of a 194-unit project in Bellevue, WA, according to a release. According to Security Properties, the performance of the property is expected to improve when the Thomas Jefferson School of Law completes its relocation from its Mission Hills location to a new building one block away from Entrada. The law school, which has an enrollment of 800 students, is planning for growth to 1,000 students in its new facility along with faculty in excess of 200 people. Given Entrada’s large mix of studios and one bedrooms and its close proximity to the new law school campus, Dufenhorst believes that its performance will continue to improve after the law school’s opening in January 2011.
As GlobeSt.com previously reported, Dale Royal, a senior project manager with the Centre City Development Corp., a nonprofit organization that serves on behalf of the San Diego Redevelopment Agency, told GlobeSt.com that the Entrada Complex was built to cater to the 25- to 35-year-old demographic. SRM was originally attracted to the location when it decided to undertake the project. At the time, the East Village neighborhood was just beginning to evolve, but the developer looked at San Diego’s Petco Park project and envisioned a future here similar to San Francisco and its famed SBC Park. “We really believed that was going to occur down here because San Diego just has such a high level of unmet demand for any type of housing-–be it market-rate or affordable,” Jim Rivard, a partner in SRM Development, said at the time. Construction cost for the project when it was originally built was $18.5 million, as GlobeSt.com previously reported.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
