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VISTA, CA—MG Properties Group has purchased Alexan Melrose, a highly amenitized, class-A apartment community along the North County Sprinter line here free and clear of existing debt. The property, a 410-unit asset, is situated on approximately 20 acres at 1401 N. Melrose Dr. in Vista, about 7 miles from beachfront recreation.
GlobeSt.com was unable to determine the full purchase price before deadline, but CBRE Capital Markets' Debt & Structured Finance reports that its team has arranged a $84.9-million loan on behalf of MG for the financing of this sale. CBRE's Scott Peterson, Bill Chiles, and Brian Cruz secured an aggressive 10-year, fixed-rate loan with full interest-only through Freddie Mac. MG plans to rebrand the property as the Preserve at Melrose Apartments.
HFF marketed the property exclusively on behalf of seller Trammell Crow Residential and its joint-venture partner. The HFF investment sales team was led by director Hunter Combs and senior managing director and co-head of the national multi-housing investment sales platform Sean Deasy.
Alexan Melrose, a three-story, garden-style community, was completed in 2015 and features one-, two- and three-bedroom units averaging 985 square feet with best-in-class finishes such as quartz countertops in the kitchens and baths, European-style cabinetry, stainless-steel appliances, hardwood-style flooring, in-unit washers and dryers, soaking tubs and attached garages and carports. Community amenities include a resort-style pool and spa with cabanas, fire pit and grills; state-of-the-art fitness facility with kids' entertainment suite; lounge with kitchen, billiards and gaming system; clubhouse with gourmet kitchen, coffee bar and flat-screen TV; dog park and dog washing station; community garden; and outdoor tot lot. The community, located close to two full-service grocery stores, Downtown Vista Village and Del Oro Marketplace, is 97% occupied.
Combs calls the sale “a unique opportunity to acquire 410 highly-amenitized, transit-oriented units in the supply constrained submarket of Vista. Alexan Melrose is well-positioned for long-term growth resulting from its strategic location along the North County Sprinter line, giving residents a convenient commute to emerging downtown Vista and Cal State San Marcos. Additionally, the property is near two of the State Route 78 corridor's top employment hubs, Oceanside and Vista, with approximately 30,000 highly skilled jobs within industries such as life science, pharmaceuticals, action sports and information and communication technologies.”
TCR has invested considerably in the San Diego market with its Alexan properties. As GlobeSt.com reported in March 2016, the firm's Southern California division at that time had started construction on the Alexan Tower, a 250,000-square-foot, 313-unit, mixed-use development consisting of a 19-story tower with 209 apartment units, a four-story residential building with 104 units, subterranean parking for 376 vehicles and an indoor-outdoor restaurant in a converted 100-year-old church. According to the firm, the 250,000-square-foot project, which was originally scheduled for completion in the third quarter of 2017, is now scheduled for completion in October 2018.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
