San Diego was one of Mesirow’s top investment targets for many years.
Last week, the Chicago-based financial services company got the opportunity to invest in the metro when it purchased the Preserve at Melrose, which sits in the suburban community of Vista, for $185 million.
“This asset fit perfectly into their investment thesis, and they had conviction around the Vista and north country San Diego market,” said Hunter Combs, managing director of Bethesda, Maryland-based real estate finance and advisory services firm Walker & Dunlop’s Investment Sales Team in San Diego, which represented the buyer and the seller in the transaction.
Preserve at Melrose, a 410-unit property built in 2015, offers one-, two- and three-bedroom apartments with resort-style amenities within a low-density, garden-style setting.
“The buyer plans to refresh the entire property to compete with some of the newer properties coming online in the immediate area,” Combs said.
Preserve at Melrose is adjacent to the city’s Melrose Dr. light rail station and located off State Route 78, which provides residents with direct access to major employment hubs, including Oceanside, Carlsbad, San Marcos, and Escondido.
When Walker & Dunlop brought the property to market, there was “strong interest due to the vintage, suburban lower-density location, strong prospects for growth and high barriers to entry in terms of limited new supply,” Combs said.
The Preserve at Melrose sale ended up being the second-largest transaction in San Diego this year, according to Walker & Dunlop. With transaction volume improving, Combs expects more high-profile deals next year.
“We expect volume to continue to pick up heading into 2025 with more capital in the market for high-quality apartments in San Diego,” Combs said.
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