LOS ANGELES, CA – Multifamily owner-operator and investment manager Pacific Urban Investors (“Pacific”) acquired five properties totaling 1,299 units with a total consideration of $560.4 Million in Southern California during 2022. This includes two assets located in the San Diego MSA, with one in Poway and one in Oceanside, two assets in the Ventura County MSA, with one in Camarillo and one in Moorpark, and one asset located in the Los Angeles MSA, more specifically, Warner Center. In total, at year end 2022, Pacific’s Southern California portfolio consists of 20 properties totaling 4,761 units.
“Pacific’s expansion in Southern California during 2022 adds vintage apartment assets to the portfolio that will provide durable and growing cashflows for our investors over time, and communities that offer a high-quality experience at a significant value proposition for our residents. Our management team will implement our business plans for the communities in the upcoming year which include pursuing IREM CSP green certifications and upgrades to the building systems. The resident experience will be enhanced via new technology interface, an overhaul of the amenities, and refreshed unit finishes.” said Grant Geisen, Senior Vice President of Investments at Pacific.
Pacific’s investments during 2022 in the San Diego MSA include two garden communities in job-rich locales with appealing lifestyle attributes. In the highly sought-after Ocean Hills community of Oceanside, Pacific acquired 404 garden-style units called Windrift. The Ocean Hills area is well regarded for its regionally renowned schools, safe neighborhoods, expansive green spaces, and accessibility to multiple employment nodes. In the I-15 Corridor, Pacific acquired Willow Creek ($41.7 million, or about $389,719 per unit), a 107 garden-style community in the extremely desirable city of Poway with exceptional demographics, award-winning schools, expensive homes, and limited new supply. Both investments are immediately proximate to existing assets where Pacific is already experiencing success.
In the Ventura County MSA, two communities. The first, the 152-unit Rosewood in Camarillo ($61.2 million, $402,631 per unit).
Centrally situated in a coastal valley, Camarillo is desired based on good schools, numerous parks, and high-quality of living with elevated levels of home ownership. Pacific also acquired the 312-unit Waterstone at Moorpark. Within an hour of Burbank, LAX, and Santa Barbara, Waterstone at Moorpark is a contemporary asset appealing to those residents looking for a centrally located suburban living experience with high quality of life and short commute times to employment nodes throughout western Ventura County, the “101 Tech Corridor,” and San Fernando Valley.
2022 Southern California investments for Pacific also included Warner Villa ($134.5 million, or about $415,123), 324 garden style units in the Warner Center area of the Los Angeles MSA. Dubbed the “Downtown” of the San Fernando Valley, Warner Center is a 1.7-square-mile master planned area within Woodland Hills comprised of most of the area’s prime office and retail space. It is also the financial and cultural core for San Fernando Valley’s workforce of approximately 850,000 and features the 5th largest concentration of Class A office space in Los Angeles County.
“While 2022 was a challenging year for many investors given turbulence in the capital markets and rapidly shifting valuations, the acquisitions in San Diego, Ventura, and Los Angeles Counties are long-term additions in core locations with steady demand that fit squarely within Pacific’s investment thesis: vintage, lower-density communities in core locations proximate to significant employment and lifestyle amenities as a significant value proposition for residents as compared to more recent deliveries and home ownership. In these locations, low-density product in such desirable micro locations is not economically feasible to construct. Our strong capitalization and lower leverage allowed us to participate and obtain compelling economics at a time when many investors moved to the sidelines,” firm President Rory Gardner noted. “Looking forward, our outlook is very positive for both these acquisitions as well as continued investment in the area as we continue to see return-to-work, employers expand their footprint, and a forecasted reduction in new supply in light of construction cost, availability of land, and transaction pricing as compared to build cost.”
About Pacific Urban Investors: The Palo Alto, CA-based company has over $8.3 Billion in assets under management and owns and manages a national portfolio of more than 19,700 units. The firm and its partners have decades of experience in apartment investments, both repositioning and ‘re-manufacturing multifamily assets and their income streams to their optimal, core potential. Pacific has progressed over time to become a best-in-class owner, operator and asset manager in the multifamily space, serving as a fiduciary for its own partner capital as well as its strategic partnerships with institutional pension funds and other sophisticated investors.
Pacific is actively acquiring multifamily assets as a principal and providing both co-investment and preferred equity for development, acquisition, and recapitalization.