SAN DIEGO – Wood Partners, one of the nation’s largest multifamily developers, has closed sale of a luxury apartment community in San Diego’s bustling Spectrum Center business park.
The 379-unit Domain by Alta – San Diego, which opened in 2012 and is Wood’s first new community in San Diego, was sold on Friday to Essex Property Trust, Inc., for $121 million. The project at 8795 Lightwave Avenue is 80% leased.
The luxury community boasts an amenity package reminiscent of a five-star resort, in addition to being surrounded by a wealth of high profile employers. There are more than 15,000 jobs within a two-mile radius from the property and Kaiser Permanente will soon begin development of a new 300-bed state of the art facility, which will be located less than one mile away.
“There are very few luxury, institutional quality apartment buildings available for purchase in San Diego County and this was a rare opportunity to acquire one,” said Brian Hansen, the Wood Partners’ director who oversees the company’s development projects in Southern California. “The market for luxury rental properties in San Diego is tight. Supply is low, demand is high and the economy is picking up steam.”
Domain by Alta – San Diego is comprised of two four-story rental apartment buildings and a community clubhouse built over underground parking with room for 750 vehicles.
Once fully leased, the project is expected to generate approximately $12.7 million in annual tax revenues, generate 440 jobs, and pump nearly $33 million into the San Diego economy each year, based on a formula developed by the National Association of Home Builders to estimate local impact of new rental units in a typical metropolitan area.
The project is in the master-planned, 244-acre San Diego Spectrum business and residential community. Its 23 studios, 197 one-bedroom and 159 two-bedroom units, as well as 35 units that meet an affordability requirement, all have patios and were built with upgraded features including wood laminate flooring and granite countertops.
The jewel of the property is an exquisite two-story clubhouse with reclaimed teak flooring and a 1,200-square-foot outdoor deck overlooking a landscaped pool area with waterfalls, cabanas, a spa, barbeque pits and trellises. Inside, the clubhouse has wireless work stations and a large health club with the latest equipment.
“As the leading multifamily community in Kearny Mesa and one of the most desirable rental assets in central San Diego, Domain San Diego is poised to capture significant growth,” said Ronald Harris, Executive Vice President of Investments for Institutional Property Advisors, a Marcus & Millichap Company, who brokered the deal.
Located between Interstate 805 and Interstate 15, the community offers easy access to downtown San Diego, beaches and Mission Valley shopping. It was built to target young, active professionals who want to be near dozens of restaurants, bars and nightclub as well as the area’s large biotech and health care industries.