A joint venture partnership between CEDARst Companies, a vertically integrated real estate development platform, and Quartz Lake Capital, a private equity real estate investment manager, has announced plans for its second multifamily development in San Diego, FLATs Bancroft.
The 255,862-square-foot building will also feature 3,005 square feet of ground-floor retail space targeting coffee or food and beverage users. The joint venture previously announced plans for FLATs Hillcrest, a $145 million, 301-unit project in the Hillcrest submarket.
The project is located four blocks from University Avenue and 30th Street, the center of a North Park neighborhood characterized by diverse retail and restaurant offerings, music venues, and a vibrant artist scene. With its accessibility to restaurants, shopping, grocers, and entertainment, FLATs Bancroft carries a walk score of 95.
“The cornerstone of CEDARst’s San Diego strategy is to deliver high-quality, in-fill multifamily projects that connect with the character of the neighborhood and promote housing accessibility and equality,” said Will Murphy, CEO of CEDARst Companies. “We’ve designed FLATs Bancroft as a reflection of the incredible North Park community.”
As CEDARst and Quartz Lake continue to invest in multifamily development projects in San Diego, the partnership is executing a “neighborhood in-fill, community-focused development strategy,” said Murphy. “We’re utilizing Complete Communities to deliver high-quality housing at diverse price points that are affordable to numerous segments of the market.”
The land on which Bancroft will be developed was acquired from North Park Baptist Church which is located across the street from the subject property. The site consists of six lots the Church had accumulated over time. The development team for FLATs Bancroft includes JWDA Architecture and Suffolk Construction.
Another important aspect of CEDARst’s San Diego projects is a commitment to delivering affordable and workforce housing options, an overarching principle for Cedar Street. Naturally occurring affordable housing (“NOAH”) and deed-restricted affordable units will account for 10% of the total apartment homes in the project.
When originally announced in late 2021, the CEDARst/Quartz Lake partnership announced plans to invest $300 million in equity delivering Class A development projects totaling $750 million in total cost with projects ranging from $75 million to more than $200 million. When combined with additional projects outside of the Quartz Lake joint venture, Cedar Street is expected to deliver 2,675 units with a total cost of $1.4 billion over the next three years.
CEDARst 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.
Quartz Lake Capital was formed in late 2019 by commercial real estate industry veteran K. Jay Weaver, previously a co-founder of Walton Street Capital. Quartz Lake Capital focuses on value-add and opportunistic equity investments in existing and development assets in primary and liquid secondary markets in the U.S., with a predisposition to urban markets with live/work/play environments and infill suburban submarkets.
