Oceanside, California (January 31, 2019) – 29th Street Capital (29SC), a privately-held real estate investment and advisory firm, has acquired The Dylan Apartments, a 207-unit multifamily community in Oceanside, California. 29SC plans to invest approximately $8,500 per unit in capital improvements, including modern flooring, new cabinet fronts, interior doors, hardware and appliances as needed. Exterior projects will include patio pavers and higher-quality finishes in addition to curing deferred maintenance.
“We believe The Dylan is a tremendous opportunity to enter the Southern California market,” said Richard Marshall, Vice President of Acquisitions for Southern California. “The fundamentals in the market are strong as the costs of home ownership continue to rise.”
San Diego County has one of the highest concentrations of millennials in the country, an age cohort that heavily relies on renting. The San Diego metro area is at near-historic low unemployment led by biotech, life sciences and health sector growth.
The Dylan is approximately four miles from downtown Oceanside and the beach. It is about eight miles from Camp Pendleton, which has an approximate daytime population of 80,000 and is home to 38,000 military family members. Residents also have access to the COASTER commuter train and State Route 76, providing short commutes to major employers along the 78 Corridor.
“Oceanside and the 78 Corridor are experiencing robust economic growth that shows no signs of slowing,” Marshall added. “29SC hopes our business plan will ease the burden of renting in Southern California by offering high quality yet still affordable housing.”
The transaction closed January 31. The sale price was not disclosed.
Formed in 2009, 29th Street Capital is a privately-held real estate investment and advisory firm that employs a value-added investment strategy in acquiring properties that typically fall below the radar of its institutional peers. Over the past 12 months 29th Street Capital has also acquired 17 conventional multifamily assets and continues to actively pursue additional opportunities throughout the U.S.
29SC’s conventional multifamily portfolio currently consists of more than 7,500 units having acquired over 14,000 units across its 14 offices in the U.S. Investments typically require approximately $10 million to $100 million of total capital and involve the acquisition or recapitalization of individual real estate assets, portfolios or platforms.