SAN DIEGO, CA - Marking what is expected to be one of the largest multifamily trades on the California Coast in 2013, Jones Lang LaSalle’s Capital Markets experts announced the sale of Coronado Bay Club in San Diego County on behalf of LaSalle Investment Management. A joint venture between Alliance Residential and a large institutional investment fund purchased the premier waterfront property, located in Coronado, California.
"With our $160MM+ purchase of Coronado Bay Club this week, Alliance’s Southern California region is continuing our tremendously quick start out of the gate this cycle,” says Drew Colquitt, Alliance’s Managing Director for acquisition, development and construction in Southern California. “We were staffed strategically coming out of the recession and in a solid position to purchase well-located multifamily development sites at discounted prices, as well as undertake several early-cycle development starts and value-add acquisitions.”
“This is a very unique, very special property — possibly the largest oceanfront rental community in Southern California,” Colquitt adds. “We have a strategic vision that, once executed, will leverage this asset’s existing strengths while significantly enhancing its long-term value.
Executive Vice President Darcy Miramontes and Vice President Kip Malo led the Jones Lang LaSalle (JLL) team on this transaction, along with International Director Jubeen Vaghefi and Managing Director David Young.
“There was a tremendous amount of interest in this marquee property,” Miramontes said. “We led more than 50 tours to prospective buyers, ranging from institutional investors to high-net-worth individuals and including both domestic and international entities. Ultimately, it was Coronado Bay Club’s history of strong performance, stellar location and well maintained property that made it so appealing to Alliance.”
“With an unparalleled waterfront location in a gateway city, the sale of Coronado Bay Club sets the market along the southern coast of California this year and is a testament to San Diego’s strength overall. Job growth in the health and technology sectors has fueled the economic revival in the region, leading to an occupancy rate of 97 percent,” said Young.
Coronado Bay Club is an 18-building, three-story, garden-style apartment community on a 13.9-acre site at 1515 Second Street. It is located on the bay, across from downtown San Diego in the affluent community of Coronado, and close to the world-renowned Hotel Del Coronado and Coronado Beach. Coronado Bay Club offers unobstructed views of downtown San Diego, the Coronado Bay Bridge and San Diego Bay from select units, and an abundance of onsite amenities. The amenities include: tennis courts, state-of-the-art fitness center, resort-style pool, spa, saunas and locker rooms, dog park, picnic area with barbecues, 18,000-square-foot clubhouse, meeting rooms, business center, catering kitchen, media room, on-site beauty salon and garage parking.
Including this recent high-profile acquisition, Alliance's Southern California region has acquired, commenced construction, completed or contracted for 13 projects with a total capitalization of roughly $1 billion during the current real estate cycle. The company has a unique 100-percent closing ratio on properties placed under contract, and is looking to further expand its market share in the region. Specifically, Alliance is looking at several new opportunities to commence in 2014. Thanks to the company’s ability to self-perform as general contractor for all of its projects and its in-house property management platform, Alliance benefits from numerous competitive advantages, and has a strong appetite and available capital for additional development sites.