SAN DIEGO-Multifamily owner Security Properties Inc. has signed a 15-year master lease agreement with the Thomas Jefferson School of Law for the Entrada Apartments property in downtown San Diego. Acquired by Security Properties for $22 million at a 6.25% cap rate in July 2010, the 172-unit Entrada Apartments complex will provide convenient housing for the law school’s growing student body.
Security Properties tells GlobeSt.com that it is not disclosing terms of the lease agreement. Located in San Diego’s East Village neighborhood one block from the law school’s new downtown campus, Entrada Apartments is in close proximity to nearby shopping, dining and recreation as well as a block from the light rail line.
“Our long-term lease with the Thomas Jefferson School of Law represents a win-win for all parties,” says John M. Orehek, president and CEO of Security Properties. “Not only does Entrada Apartments support the law school’s ability to attract and grow its student body, but it also provides tenant stability and predictable cash flow for the project’s ownership and investors.”
Formerly located in San Diego’s Old Town area, Thomas Jefferson Law School recently completed its relocation downtown with a new facility that opened in January 2011. With a current enrollment of 950 students and 200 faculty/staff, the law school plans to expand its student body to more than 1,000 students at its new downtown campus in the coming year. As the school’s first designated student housing building, Entrada Apartments will be occupied by students starting in the spring 2011 term.
“We are thrilled to have been able to partner with Security Properties to provide such a high-quality housing option for our students engaged in heavy law studies,” says M. Elizabeth Kransberger, associate dean for Student Affairs at the Thomas Jefferson School of Law. “The situation is ideal and substantially enhances both our ability to recruit the highest quality student body to Thomas Jefferson School of Law, and to provide a greater economic benefit to the East Village community which has been so welcoming to us."
Kransberger points out that the law school plans to charge market-rate rents for the apartments and in some instances will offer need and merit-based housing grants to its students. Roughly 90% of the building’s units are studios, with rents for the studios ranging from $900-$1,200.
In addition, the law school is offering its students units in the building as they naturally free up and become available, so “it will be an organic transition and they will not be evicting any current residents who live at Entrada,” according to the law school. The school already had 26 students living at Entrada prior to the lease signing since it’s one of many downtown buildings where students reside, and currently they have a total of 48 law school students living at Entrada. They have established a waitlist process for students, which is used as vacancies arise in the building.
Built in 2004, the 159,000-square-foot Entrada Apartments building includes a mix of studio, loft, one-bedroom, two-bedroom and three-bedroom apartments. The building features a newly renovated rooftop common area, interior courtyard, fitness center and underground parking. The apartment complex occupies a central location in the heart of downtown San Diego, which is being revitalized into a mixed-use, transit-oriented urban area.
La Jolla Capital Partners broker Steve Chiles represented the Thomas Jefferson School of Law and Security Properties represented itself in the Entrada Apartments lease transaction. La Jolla Capital Partners also represented the law school in the land acquisition and assisted with financing the new $90 million law school facility.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, 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.
