multifamily Interstate Equities Corp. Brendan Gibney acquisition value-add IEC Institutional Fund III L.P.
Marshall Boyd, co-president and chief investment officer of IEC said, in a prepared statement, “Entering the San Diego market is a natural progression for our firm's investment platform.” He said the firm specializes in acquiring unrenovated or partially renovated assets in coastal infill markets in the Bay Area and top markets in Southern California. “Over the years, as our firm has researched San Diego, we came to recognize the San Diego multifamily market is operationally resilient and has many similar characteristics to our best markets.”
Built in 1976, Verse La Mesa, which IEC will rebrand as the Cove, will undergo interior renovations including the installation of washers/dryers and dishwashers, new paint, laminate wood floors and upgraded fixtures throughout the units.
We spoke with Gibney about the firm's interest in the San Diego market and the La Mesa submarket.
Verse La Mesa will be rebranded as the Cove and will undergo interior and exterior renovations.
GlobeSt.com: What interests you most about the San Diego market and the La Mesa submarket in particular?
Gibney: San Diego has many characteristics similar to other markets in which we've been investing: it's operationally resilient, it has job hubs and a strong Downtown. La Mesa is gaining ascendancy in the San Diego market, and its incomes are projected to increase—plus, it's only a 15-minute drive to Downtown, and it's close to buses to the universities. The submarket is upward moving in rents, and it's seeing huge biotech and life-sciences growth—as residents get priced out of infill coastal markets close to Downtown and the beach communities, they've have been coming out to areas like La Mesa, Vista and Escondido to gain more value for their home.
GlobeSt.com: Do you see transaction volume for multifamily slowing at this point in the cycle?
Gibney: We saw a slowdown following the election and into this year, but since the summer it has really ticked up, particularly in San Diego. We're paying close attention to what is happing in this market. It offers a lot of upside potential relative to other deals in the area.
GlobeSt.com: What are your plans for the property?
Gibney: We're renovating interiors and installing more modern fixtures and appliances throughout. We'll also do upgrades on the exterior—it will be fully renovated—but the interior needs attention. We plan to renovate and stabilize the property to market level.
GlobeSt.com: What else should our readers know about this transaction?
Gibney: This represents IEC's first transaction in San Diego, and we're very excited to be entering the market. It's a natural progression for our firm's platform—both SD and La Mesa.
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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.
