SAN DIEGO-Security Properties Inc. paid $22 million for Entrada,a 172-unit apartment property located at 453 13th St. indowntown San Diego. The seller, SRM Development LLC, constructedthe project in 2004.

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Kevin Mulhern, Dixie Hall and Rachel Hemingway of CB RichardEllis Inc. represented the seller. Security Properties Inc.represented itself. Mulhern tells GlobeSt.com that there weremultiple offers for the property.

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Located in downtown San Diego’s East Village neighborhood, theapartment property includes a fitness center, business center,conference room and rooftop terrace with panoramic views. SecurityProperties plans some capital improvements for the property,including: renovating the leasing office and roof top commonarea; and implementing a vibrant exterior paint scheme.

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Entrada’s unit mix includes 126 studios; 36 one-bedroom,one-bathroom units; five two-bedroom, two-bathroom units; threethree-bedroom, two bathroom units; one live-work unit and oneloft. The project has 40 units set aside for low andmoderate-income residents.

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Security Properties Inc. capitalized the acquisition by assumingan existing conduit loan and assumed a modified loan from CentreCity Development Corp. CCDC provided the original developer with$3.5 million of equity to construct the complex in exchange forproviding 40 affordable units as part of the project.

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David Dufenhorst, managing director at Security Properties, isexcited not only to re-enter the San Diego marketplace but tofurther build upon an institutional equity partner relationshipthat started in early 2008 with the purchase of a 194-unit projectin Bellevue, WA, according to a release. According to SecurityProperties, the performance of the property is expected to improvewhen the Thomas Jefferson School of Law completes its relocationfrom its Mission Hills location to a new building one block awayfrom Entrada. The law school, which has an enrollment of 800students, is planning for growth to 1,000 students in its newfacility along with faculty in excess of 200 people. GivenEntrada’s large mix of studios and one bedrooms and its closeproximity to the new law school campus, Dufenhorst believes thatits performance will continue to improve after the law school’sopening in January 2011.

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As GlobeSt.com previously reported,Dale Royal, a senior project manager with the Centre CityDevelopment Corp., a nonprofit organization that serves on behalfof the San Diego Redevelopment Agency, told GlobeSt.com that theEntrada Complex was built to cater to the 25- to 35-year-olddemographic. SRM was originally attracted to the location when itdecided to undertake the project. At the time, the East Villageneighborhood was just beginning to evolve, but the developer lookedat San Diego’s Petco Park project and envisioned a future heresimilar to San Francisco and its famed SBC Park. “We reallybelieved that was going to occur down here because San Diego justhas such a high level of unmet demand for any type of housing-–beit market-rate or affordable,” Jim Rivard, a partner in SRMDevelopment, said at the time. Construction cost for the projectwhen it was originally built was $18.5 million, as GlobeSt.compreviously reported.

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Natalie Dolce

Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.