Massive $185 million sale of Preserve at Melrose sparks debate in San Diego

In the United States, Walker & Dunlop, Inc. has successfully arranged the $185,000,000 sale of the multifamily community known as Preserve at Melrose, which was built in 2015. This significant transaction marks the second largest single-asset sale in San Diego for the year 2024. Located in Vista, an increasingly popular neighborhood within San Diego’s north county, the property features 410 residential units. The deal is reflective of growing investor interest in the San Diego area, which constitutes 10% of all U.S. multifamily transactions exceeding $150 million since the beginning of the year. The Preserve at Melrose is strategically situated adjacent to light rail stations, enhancing its appeal due to convenient access to public transportation. This location is not only near downtown Vista but also offers residents direct transport to major employment centers along the 78 corridor, such as Oceanside, Carlsbad, San Marcos, and Escondido. Significantly, the investment in this property underscores the broader trend of life sciences and tech companies gravitating towards the region, further contributing to its economic stability. Hunter Combs, managing director of Investment Sales at Walker & Dunlop, emphasized San Diego's outstanding market resilience, driven by consistent rent growth and robust economic fundamentals. These factors are solidifying the area as an attractive location for investors looking to capitalize on the multifamily sector. The seller, a local group based in San Diego, and the buyer, Mesirow, have both recognized the Preserve's features, which include a comprehensive set of amenities and its transit-oriented setting. Alasdair Cripps, the CEO of Mesirow Institutional Real Estate Direct Investments, indicated that the property’s advantageous location in relation to employment centers makes it one of the most desirable multifamily developments in San Diego’s north county area. This transaction not only highlights the increasing value of multifamily communities in urban centers but also illustrates growing confidence in the San Diego market.