The San Diego area is one of the most desirable places to live in the country, and GID Real Estate Investments wants in on the action.
The Houston-based developer purchased Millenium PQ, a 331-unit trophy multifamily complex in the city’s affluent Rancho Penasquitos neighborhood, for $167 million, or $504,532 per unit. Houston-based developer The Dinerstein Companies sold the asset.
Walker & Dunlop brokered the sale and claims it is the second-largest single-asset deal to close in California, and the fifth-largest nationwide, so far in 2024. The property, at 14433 Penasquitos Drive, is just four miles south of Apple’s future 68-acre, $445 million San Diego campus, and 16 miles northeast of the University of California San Diego.
“San Diego remains a top institutional metro, with 13 percent of the total U.S. multifamily transactions exceeding $150 million and 26 percent within California year-to-date,” Hunter Combs, managing director of investment sales at Walker & Dunlop, said in a statement. “San Diego’s market strength is propelled by its historically consistent rent growth and the influx of life science surrounding UCSD and big tech companies establishing their presence here, in addition to the long-standing defense industry.”
Representatives for GID and Dinerstein did not immediately respond to requests for comment.
Millennium PQ may have commanded an eye-watering sum, but several other multifamily properties in Southern California have also drawn nine-figure prices so far this year.
Take the 492-unit Silverado Apartment Homes in Murrieta, Calif., which was purchased by Bell Partners in May for $147 million. Or there’s the 376-unit Ranch at Moorpark in Ventura County, which Decron Properties in April sold to AEW Capital Management for a cool $133 million.
Nick Trombola can be reached at NTrombola@commercialobserver.com.