JLL Capital Markets announced it closed the $45.3 million sale and arranged a $27 million acquisition financing for Il Palazzo, a 108-unit multihousing community located in the heart of Little Italy, San Diego, California.
JLL represented the seller, The Picerne Group, to complete the sale to the buyer, Fairfield Residential (“Fairfield”.) JLL also worked on behalf of Fairfield to arrange the 10-year, 2.84 percent-rate acquisition financing through the lender.
Originally built in 2004, the five-story, mid-rise property totals 77,679 rentable square feet, includes studio, one- and two-bedroom units and offers a rare opportunity for the buyer to acquire a unique asset with value-add opportunity in the heart of an extremely sought-after neighborhood in San Diego. Currently, select apartments include designer kitchens and baths, granite countertops, in-home washers and dryers, patios and balconies and stainless-steel appliances. Community amenities include barbecue and fire pits, sundeck terrace and a fitness center.
Boasting a Walk Score of 92, Il Palazzo is located at 2040 Columbia St., also bounded by Grape St., India St. and Hawthorne St., offering unparalleled access to Downtown San Diego and the various shops, dining and entertainment within the Little Italy neighborhood. Moreover, San Diego’s booming employment scene will help drive fundamentals for ownership. San Diego is the third largest life science hub in the nation and #1 city for expected tech hiring growth in the U.S.
The JLL Capital Markets team representing the seller was led by Managing Director Darcy Miramontes, along with Senior Managing Director Sean Deasy and Senior Director Kip Malo. Financing was led by Senior Managing Director Aldon Cole and Senior Director Jamie Kline.
JLL was able to run a competitive debt process on a short timeline. Kline says, “The transaction garnered a lot of interest from a diverse range of capital sources. We were able to lock rate early in the process with the lender, allowing the buyer to avoid the recent run up in treasuries.”
Miramontes continues, “Even amid the pandemic, the process was extremely competitive. The property’s sought-after location in the desirable Little Italy neighborhood generated a lot of interest.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge deliver best-in-class solutions for clients—whether investment sales advisory, debt placement, equity placement, or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
Jones Lang LaSalle Americas, Inc. (“JLL”) is a real estate broker licensed with the California Department of Real Estate, license #01223413.