SEATTLE, WA - Security Properties Inc., one of the largest multifamily real estate owners in the country, today announced it has signed a 15-year master lease agreement with the Thomas Jefferson School of Law for the Entrada Apartments property in downtown San Diego. Acquired by Security Properties for $22 million at a 6.25% cap rate in July 2010, the 172-unit Entrada Apartments complex will provide convenient housing for the law school's growing student body. Located in San Diego's East Village neighborhood one block from the law school's new downtown campus, Entrada Apartments is in close proximity to nearby shopping, dining and recreation as well as a block from the light rail line.
Source: Security Properties
"Our long-term lease with the Thomas Jefferson School of Law represents a win-win for all parties," said John M. Orehek, President and CEO of Security Properties. "Not only does Entrada Apartments support the law school's ability to attract and grow its student body, but it also provides tenant stability and predictable cash flow for the project's ownership and investors."
Formerly located in San Diego's Old Town area, Thomas Jefferson Law School recently completed its relocation downtown with a new facility that opened in January 2011. With a current enrollment of 950 students and 200 faculty/staff, the law school plans to expand its student body to more than 1,000 students at its new downtown campus in the coming year. As the school's first designated student housing building, Entrada Apartments will be occupied by students starting in the spring 2011 term.
"We are thrilled to have been able to partner with Security Properties to provide such a high-quality housing option for our students engaged in heavy law studies," said M. Elizabeth Kransberger, Associate Dean for Student Affairs at the Thomas Jefferson School of Law. "The situation is ideal and substantially enhances both our ability to recruit the highest quality student body to Thomas Jefferson School of Law, and to provide a greater economic benefit to the East Village community which has been so welcoming to us."
Built in 2004, the 159,000-square-foot Entrada Apartments building includes a mix of studio, loft, one-bedroom, two-bedroom and three-bedroom apartments. The building features a newly renovated rooftop common area, interior courtyard, fitness center and underground parking. The apartment complex occupies a central location in the heart of downtown San Diego, which is being revitalized into a mixed-use, transit-oriented urban area.
Security Properties' target investment and development markets are located in 24/7 global gateway cities primarily on the West Coast – including Seattle, San Francisco, San Diego and Portland, with additional development in Chicago.
La Jolla Capital Partners broker Steve Chiles represented the Thomas Jefferson School of Law and Security Properties represented itself in the Entrada Apartments lease transaction.
Security Properties is a national real estate investment and operating company headquartered in Seattle, Washington with a 41-year history in both affordable and conventional multifamily rental housing. The company's broad range of capabilities includes acquisitions, development, financing, asset and property management, dispositions and advisory services. As one of the largest owners of multifamily real estate in the country and in the Puget Sound region, Security Properties has acquired or developed nearly 64,000 conventional and affordable housing units spanning over 440 properties in more than 40 states.