New Rancho Penasquitos Luxury MF Housing Development Sold for $167M as Largest Single-Asset Sale in California in 2024
Summary
Here are key points about the multifamily property transaction:
1. Walker & Dunlop arranged the $167 million sale of Millennium PQ, a 331-unit multifamily community in San Diego's Rancho Penasquitos neighborhood.
2. The sale is the second-largest single-asset transaction in California and the fifth largest nationwide in 2024, with a price of $504,532 per unit.
3. The Dinerstein Companies developed and sold the property to GID Real Estate Investments, who renamed it Windsor Rancho PQ.
4. The property features high-end finishes and resort-style amenities in a garden-style setting, located near top employment hubs and in one of San Diego's best school districts.
5. San Diego's real estate market remains strong, with 13% of U.S. multifamily transactions over $150 million and 26% of California's transactions occurring in the area over the past 19 months.
6. The sale highlights San Diego's attractiveness to investors due to consistent rent growth and the presence of life science, tech, and defense industries.
7. Walker & Dunlop has completed over $51 billion in property sales volume since 2021 and originated over $24 billion in debt financing volume in 2023.
8. The transaction represents a trend in San Diego of fewer multifamily units selling for higher prices compared to the previous year.
Walker & Dunlop Arranges Second Largest Single-Asset Sale in California and Fifth Largest Nationwide in 2024 | Business Wire
BETHESDA, Md.--(BUSINESS WIRE)--Walker & Dunlop, Inc. announced today that it arranged the $167,000,000 sale of Millennium PQ, [renamed by the new owners GID Real Estate Investors as Windor Rancho PQ] a trophy suburban core multifamily community comprising 331 units in Rancho Penasquitos, one of San Diego’s most sought-after neighborhoods.[331 Units at 14433 Penasquitos Drive • San Diego CA 92129 • Northeastern San Diego]
This sale marks the largest suburban core transaction and second-largest single-asset transaction in California, as well as the fifth largest nationwide in 2024. The purchase price translates to an impressive $504,532 per unit.
The Walker & Dunlop Investment Sales team, led by Hunter Combs, represented the seller, The Dinerstein Companies, and the buyer, GID Real Estate Investments.
“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 2023 year-to-date,” said Hunter Combs, managing director of Investment Sales at Walker & Dunlop. “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. This dynamic underscores San Diego's exceptional market resilience and its attractiveness to investors.”
Located in the Rancho Penasquitos submarket of San Diego, Millennium PQ benefits from being situated in one of the county's top school districts and within minutes from San Diego’s top employment hubs, including Apple’s future 68-acre campus. The property features high-end finishes and resort-style amenities in a serene, low-density garden-style setting. It stands out as one of only two core institutional assets in Rancho Penasquitos and one of just five within a 10-mile radius.
Walker & Dunlop is a leader in multifamily property sales, having completed over $51 billion in property sales volume since 2021. The firm is also one of the top providers of capital to the U.S. multifamily market. In 2023, Walker & Dunlop originated over $24 billion in debt financing volume, including lending over $20 billion for multifamily properties. To learn more about our capabilities and financing options, visit our website.
About Walker & Dunlop
Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in the United States. Our ideas and capital create communities where people live, work, shop, and play. The diversity of our people, breadth of our brand and technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry.
GID Buys Luxury San Diego Asset for $167M
This was the largest suburban core transaction in California so far this year.
GID Real Estate Investments [with $29B assets under management, and an inventory of >55k units of multifamily housing] has purchased Millennium PQ, a 331-unit trophy suburban core community in San Diego. The Dinerstein Cos. sold the asset for $167 million [after developing it on the former Golf Course land] in a transaction brokered by Walker & Dunlop. Following the acquisition, GID renamed the asset to Windsor Rancho PQ.
[The Dinerstein
Companies (TDC) is an award-winning, nationally renowned development,
construction, and property management company headquartered in Houston, TX
with regional offices in Encinitas, California and Austin, Texas. TDC
prides itself on developing and acquiring sustainable communities that
endure.]
With a price per unit of $504,532, the sale marks the largest suburban core transaction and the second-largest single-asset acquisition in California, as well as the fifth-largest nationwide deal this year so far.
Windsor Rancho PQ came online on some 14 acres last year. Newman Garrison + Partners provided architectural services, while EPTDESIGN handled landscaping.
READ ALSO: Multifamily Ranks No. 1 as Investor Choice
The eight-building community encompasses studio and one- to three-bedroom floorplans ranging between 483 and 1,503 square feet. Select units feature key fob entry access, attached one- and two-car garages, as well as private balconies or patios, to name a few.
Community amenities include a swimming pool with sundeck and lounge seating, a resident lounge and clubhouse, coworking spaces, a gym and a playground, in addition to a dog park and EV charging stations, among others.
Located at 14433 Penasquitos Drive, Windsor Rancho PQ is less than 1 mile from Interstate 15, while downtown San Diego is some 21 miles southwest. Two employment hubs, which according to Sandag encompass north of 57,000 employees, are within 8 miles.
Walker & Dunlop Managing Director Hunter Combs led the brokerage team which represented both parties in the transaction proceedings.
Less multifamily units selling for more
According to prepared remarks by Combs, San Diego’s deals over the past 19 months represented 13 percent of the total U.S. multifamily sales of more than $150 million. Moreover, the metro’s transactions made up 26 percent of all California multifamily deals during the same period.
Year-to-date through June, more than 500 units changed hands in San Diego, with an average price per unit upward of $391,000, according to Yardi Matrix data. Last year, north of 1,000 units traded during the same interval, albeit with a lower average price of some $343,000.
One of the Greater San Diego deals of this year closed in Chula Vista, Calif. Pacific Urban Investors purchased Terra Nova Villas and renamed it to The Emery at Terra Nova. The 233-unit community commanded $82 million.
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