SAN DIEGO, CA - Wood Partners, L.L.C., one of the nation's largest and most successful multifamily developers, announced today it has purchased a 5.9 acre fully permitted apartment site in the Spectrum Center business park, where it plans to develop a 379-unit luxury apartment community.
Source: Wood Partners
Construction of the four-story podium project, which will include two separate apartment buildings over two levels of basement garage with 750 parking spaces, will start by Sept. 1. The first homes are expected to become available for lease in the first quarter of 2012.
Financing for the $90 million project - which includes the purchase price, permitted set of full design plans, and construction costs - was secured in a swift 60-day time period.
"It came together a lot faster than most deals, especially in this kind of market," said Director Brian Hansen, who oversees the company's development projects in Southern California. "Some people were skeptical that a private developer could come in and raise close to $90 million in 60 days. We have strong financial partners that were able perform their due diligence quickly and perform in an extraordinary manner. The general contractor also did an excellent job in working with our team to finalize a construction contract in quick order."
The property is located in the master-planned, 244-acre San Diego Spectrum business and residential community. It was owned by Sunroad Enterprises, a local real estate development firm that envisioned the apartment complex as part of its 40-acre office, residential and retail center that was stalled during the recession. Wood Partners will revive the apartment community using the original plans and building permits, which it also purchased.
"The strategic location of this property was immensely attractive to us and our investors," Hansen said. "It is located in the middle of a major employment hub with easy access to all the major points of San Diego, particularly downtown San Diego, the local beaches and Mission Valley. The design is very efficient, attractive and targeted to the right demographic - young professionals who appreciate the outdoor Southern California lifestyle."
The community at 8798 Spectrum Center Blvd. will be centered around an expansive pool area with cabanas, a spa, barbeque pits, a waterfall and trellises that take advantage of the area's temperate weather. A two-story club house with reclaimed Teak flooring will feature a glass wall and an outdoor deck that overlooks the pool scene, in addition to a state-of-the-art fitness center and wireless Internet access. Wood Partners also will build a two-acre public park on a parcel of land in front of the project that is being designed and will be owned by the City of San Diego.
This is the first development acquisition by Wood Partners in San Diego, but it certainly won't be the last. The company is one of the top five multifamily developers in the country and in recent months has begun to move aggressively to develop new sites and acquire existing properties nationwide. Unlike some of its competitors, Wood Partners is well-capitalized and therefore able to move quickly to take advantage of opportunities to expand its portfolio.
"We see a lot of promise in San Diego," said Frank Middleton, the company's regional director for the West Coast. "It always has been and still remains a market where a lot of people want to live and we're seeing good forecasts for its recovery. On the financial side, things are still tight, but San Diego seems to be a market where investors are interested in placing capital."
Funding for the acquisition was provided by a private equity real estate fund. Chase Bank is providing the debt for construction and Ed Rosen of Cushman & Wakefield's San Diego office brokered the transaction. The general contractor for the project is Cobalt Construction.
Wood Partners is a national real estate company that acquires, develops, constructs and property manages high density and mixed-use communities. Through quality construction, responsible land development and intelligent design, our communities reflect the aesthetic and social fabric of the community and provide a luxurious living experience at a fair price. The company has been involved in the development of more than 36,000 homes with a combined value of more than $4.5 billion nationwide.