PCCP, LLC announced that it has provided a $76 million senior loan to an affiliate of Sares Regis Group for the acquisition and renovation of LIT Cortez Hill (formerly known as AVA Cortez Hill), a 299-unit, high-rise apartment property located at 1399 9th Avenue in downtown San Diego, Calif. Built in 1973, the property is situated on a 1.38-acre site in the Cortez Hill neighborhood. The seller was AvalonBay.
“PCCP’s loan will provide Sares Regis with financing for a rare opportunity to acquire a well-designed and institutionally managed high-rise apartment community with an abundance of outdoor amenity space in the secluded and desirable Cortez Hill neighborhood of downtown San Diego,” said Michael Johnson, Senior Vice President with PCCP. “A portion of the funding will be used to add value to the property by making renovations to the asset in order to attract renters seeking a modern, updated rental community.”
The 15-story property is comprised of 299 units and 1,670 sf of ground-level retail with a unit mix consisting of 97 studios, 117 one-bedroom units and 85 two-bedroom units. All of the units have private patios or balconies, with the corner units having two balconies. There are nine distinct floorplans ranging from 570 sf to 1,059 sf and an average unit size of 771 sf. The asset is the most amenitized rental option for high-rise product in Cortez Hill, with the biggest differentiator being its 30,000-plus sf of outdoor amenity space with full-size basketball and tennis courts and resort-style pool and spa. The indoor amenities include a fitness center, resident lounge, 13 laundry rooms, and a ground-floor market.
LIT Cortez Hill offers desirable views of San Diego Bay from several units and has direct access to the 163 Freeway onramp which places residents within 20 minutes of San Diego’s most prominent job centers, including UTC, Kearny Mesa, and Mission Valley. Additionally, residents are within walking distance of the Downtown Civic Core employment node, a variety of retail, dining, and entertainment options, and San Diego City College, Thomas Jefferson Law School and California Western Law School.