519-Unit Escondido Apartment Complex Fetches $90M
A JV of Illinois-based Allstate and Los Angeles investor TruAmerica Multifamily has acquired the 519-unit Eagles Point Apartment Community in Escondido for approximately $90M. It is the JV's largest single investment so far. Allstate Vice President Michael Moran, who heads real estate acquisitions, said in a press release his firm views Eagles Point as a great investment and a great way to support the community with high-quality housing that is affordable. The Allstate/TruAmerica JV now owns apartment communities with a total of more than 7,600 units.
TruAmerica plans to invest significant capital to refurbish all interior units and upgrade the property’s two pools and spas, tennis courts and clubhouse, including a new fitness center in the clubhouse. Eagles Point includes one-, two- and three-bedroom units that have not been updated since the apartment complex was built in 1985.
“With 1,600 units in our San Diego portfolio, we will be able to take advantage of economies of scale and in-house construction management expertise to transform Eagles Point into one of the most attractive communities in the submarket, and still keep rents in line for working families and individuals in the North County," said Greg Campbell, TruAmerica’s senior managing director of acquisitions and dispositions. “The property has great infrastructure but lacked the reinvestment to make it relevant in today’s market.
“Demand has far exceeded supply in Escondido, driving vacancy rates to a little more than 1%, and most of the current inventory in the area is older and lacks the amenities desired by today’s renter.”
Campbell said the city has a total inventory of less than 14,000 rental units and only two projects, with a total of 275 units, in the pipeline.
Escondido is one of the fastest-growing cities in North San Diego County. Escondido’s population has grown by 6.3% over the past five years and is projected to increase by another 5.4% by 2021, according to FastReport.
Eagles Point is across the street from one of Escondido’s main shopping centers, the Walmart-anchored Vineyard Square Shopping Center. The location provides easy access to downtown San Diego via Interstate 15, as well as the coastal communities of Carlsbad and Oceanside via State Highway 78.
A Newport Beach, California-based CBRE team headed by Vice Chairman Troy Tegeler arranged the project financing through Fannie Mae. A CBRE San Diego team of Kevin Mulhern, Rachel Parsons and Dixie Hall marketed the property on behalf of the seller.