JLL Income Property Trust Acquires Coastal Luxury Apartments in San Diego
JLL Income Property Trust, a daily valued perpetual life real estate investment trust (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX), purchased Dylan Point Loma in San Diego for approximately $90 million. The acquisition was financed at approximately 45 percent loan-to-value with a 10-year fixed rate loan at 3.83 percent.
Dylan Point Loma is a newly-developed, 180-unit coastal apartment community that offers one-, two-, and three-bedroom units walking distance to the Pacific Ocean. Property amenities include attached garages, a 6,000-square-foot community clubhouse, resort-style saltwater pool and spa with cabanas and lounges, fitness equipment, volleyball court, and barbeque areas.
“Dylan Point Loma exemplifies our core apartment investment strategy,” said Allan Swaringen, president and chief executive officer of JLL Income Property Trust. “We committed to this investment over a year ago and will complete the property’s lease up in keeping with our ‘lease to core’ apartment strategy. This property’s in-fill coastal location, extraordinary community amenities, designer architecture and barriers to new competition make it an excellent addition to our growing portfolio of diversified core, income-producing properties around the country.”
“This is our seventh investment in the multifamily property sector bringing our apartment allocation to approximately $370 million in gross assets and 20 percent of our overall investment portfolio,” Swaringen added. “After being underweight in apartments from 2012 to 2014 and also executing a timely exit from the student housing sector, we are now rebuilding this as a meaningful component of our portfolio.”
LaSalle ranks the San Diego downtown and coastal close-in apartment market as one of the top five target markets for core apartment investing in the U.S. This market is perennially among the most supply constrained in the U.S. where vacancies have averaged below 4 percent during the past ten years, compared to the national average apartment vacancy of 5.5 percent.
San Diego is also a top-ranking market in terms of rent growth and LaSalle’s Market Tracking System forecasts continued strong rent growth driven by low vacancies, steady job growth in San Diego’s technology, tourism, biotech and defense sectors, and limited new construction, the company said. Currently, San Diego has one of the lowest apartment vacancy rates in the country at 2.5 percent, with vacancies in the Point Loma submarket reaching 2 percent.
Jones Lang LaSalle Income Property Trust owns and manages a portfolio of office, retail, industrial and apartment properties located primarily in the United States. Since 2012, the company has raised a total of approximately $1.1 billion through its ongoing public and various private offerings, as well as its distribution reinvestment plan.