- What A partnership including PSP Investments and Greystar has listed Park 12 in San Diego
- Why Deal could be one of the biggest in San Diego in nearly three years
- What next Eastdil Secured is advising the sellers
A joint venture has listed a 718-unit apartment property in San Diego that’s expected to fetch bids of around US$325m ($446m), or US$450,000/unit, Green Street News can reveal.
Park 12 was built in 2018 and is about 92% occupied. The property comprises a 35-storey tower with 438 units at 100 Park Plaza, and two six-story podium buildings with 280 units at 101 Park Plaza and 201 Park Boulevard.
Eastdil Secured is advising the seller, a partnership that includes Montreal-based pension manager PSP Investments and Greystar of Charleston, S.C.
The property has 45,000 sq ft of ground-floor retail space with a weighted average lease term of 9.3 years. Tenants include CVS, East Village Brewing and F45 Training.
At the expected valuation, Park 12 would be the second largest single-property apartment trade in the San Diego market on an aggregate basis and the biggest multifamily trade in the market in nearly three years, according to Green Street’s Sales Comps Database.
Equity Residential holds the record for San Diego’s largest apartment sale. In 2013, it sold the 1,410-unit La Mirage for US$350m, or US$248,000/unit, to Irvine Co. of Newport Beach, Calif. Brookfield’s December 2020 acquisition of the 679-unit Vantage Pointe for US$312m was San Diego’s second-largest apartment sale.
Park 12 units range from studios to three bedrooms and average 928 sq ft. Twenty-three are affordable. Rent for an 835 sq ft, one-bedroom unit is listed at US$3,236. Recent leases at the high-rise achieved rents 9% higher than in-place rents, while new leases in the podium buildings were 5% higher.
The sales campaign is highlighting the property’s location within the Ballpark Village master-planned area in downtown San Diego and its proximity to major attractions and amenities, including a light rail station, Bayfront Park and Petco Park, home of the San Diego Padres baseball team.
Amenities include saltwater and heated pools, a sports lounge and game room with arcade games and a bowling alley, a golf simulator with putting greens, and a fitness center.
The average tenant income is US$270,000 and the average home value in downtown San Diego is US$896,000.
With construction costs skyrocketing, the pitch is that investors could pick up the property at a substantial discount to replacement costs, which are estimated to exceed US$800/sq ft. According to marketing materials, rents required for new buildings are more than 60% higher than current in-place rents, meaning new deliveries will be limited.
In 2023, area construction starts declined 77%, and so far, this year, no new starts are planned. Only one property is set to be delivered in the area this year, a 384-unit project at 800 Broadway.
