Chicago-based CEDARst Companies has secured $40 million in equity capital, led by a joint venture with Bridge Investment Group, for its next multifamily ground-up development project in San Diego. Flats South Park is a $90 million, 180-unit development located at 2935-2961 A Street in the South Park neighborhood of San Deigo, two blocks from Balboa Park. It is situated in a qualified opportunity zone and is part of CEDARst GP OZ Fund.
The new residential community will be comprised of 46 studio, 114 one-bedroom, and 20 two-bedroom units. In total the development will encompass 216,152 square feet. As part of the development there will be 147 parking stalls.
“Our newest project is an important milestone for our ongoing presence in San Diego and our relationship with Bridge Investment Group,” said Will Murphy, CEO and Managing Partner, CEDARst. “The ability to secure $40 million in equity in the current capital markets environment further underscores the strength and opportunity of the San Diego market.”
This represents the fourth deal between CEDARst and Bridge Investment Group. Earlier this year the partners announced a $112 million, 311-unit ground-up development located in the Arts District of Las Vegas. The project is on time and on budget, slated for completion fourth quarter of 2025.
The firm is pacing to be one of the most active developers in San Diego over the next few years, both on a unit and total cost basis. CEDARst owns six sites in north-central San Diego. In North Park, CEDARst owns 4135 N. Park Street, a 190-unit development that recently stabilized. The firm plans to refinance the project early next year. Through a joint venture vehicle with Quartz Lake Capital, a real estate private equity firm, CEDARst acquired three land parcels in north-central San Diego. CEDARst expects to break ground on at least two additional projects in San Diego next year via its partnership with Quartz Lake.
Flats South Park also represents CEDARst’s ninth opportunity zone development. It is in varying stages of planning, development, construction and management of QOZ developments totaling $500 million and featuring 1,600 units in San Diego, Chicago, and Las Vegas.
The CEDARst-Bridge partnership continues to evaluate QOZ opportunities in markets outside of Vancouver, San Diego and Las Vegas. CEDARst is actively operating in nine cities throughout the country, concentrated in the Upper-Midwest, South Florida and the West Coast. Headquartered in Chicago, CEDARst recently opened an office in Solana Beach, California to oversee its West Coast expansion.
Bridge Investment Group is a leading alternative investment manager, diversified across specialized asset classes, with approximately $49.4 billion of assets under management as of September 30, 2023. Bridge combines its nationwide operating platform with dedicated teams of investment professionals focused on select verticals across real estate, credit, renewable energy and secondaries strategies.
CEDARst™ Companies is an integrated real estate developer (IRED), headquartered in Chicago, IL, and managed by partners Alex Samoylovich, Mark Heffron, and Will Murphy. Cedar Street’s operating model integrates real estate development, management and construction. Cedar currently manages a portfolio of multifamily real estate valued in excess of $4 billion, totaling more than 7,500 units across numerous markets, including: Chicago, San Diego, Portland, Minneapolis, and Cleveland. Headquartered in Chicago, Cedar Street has regional offices in San Diego and Miami.
