The South Bay of San Diego is seeing increased development activity. The Chula Vista Bayfront Master Plan is the driving force behind the development activity. The $1 billion, 535-acre project will revitalize the Chula Vista Waterfront and bring more retail and entertainment amenities to the market. LaTerra Development's 97-unit LaTerra Select Stone Creek apartment community is one of the latest properties in the market. The developer has hired Sunrise Management to oversee preleasing and operations at the property. The San Diego-based firm has seen the impact of the development and the new demand from renters. To find out more about the increase in development activity and the benefits of being in the market, we sat down with Danielle Munoz, regional VP at Sunrise Management, for an exclusive interview.

GlobeSt.com: Can you discuss apartment development in Chula Vista/the South Bay, and what triggered it?

Danielle Munoz: A key factor in the area's robust growth on all levels is the $1 billion, 535-acre Chula Vista Bayfront Master Plan, which is poised to revitalize the Chula Vista waterfront and create a destination for locals and tourists, complete with resort hotels, a convention center, shopping, dining and a marina. It will ultimately be the largest waterfront development on the west coast and will create and sustain jobs, investment and revenues—providing a huge economic boost to the region.

In addition, South Bay cities like Chula Vista and National City are very pro-growth and friendly to developers, which makes them appealing areas. The Marriott Residence Inn Chula Vista, which opened in Oct. 2017 – is another good indicator for demand in the market, and will serve travelers expected from the recently opened pedestrian skywalk bridge for Tijuana Airport passengers crossing the U.S./Mexico border.

Multifamily growth in the South Bay has also been triggered by successful infill development to the north and east of the downtown San Diego core. The South Bay area's proximity and job growth make its development and redevelopment the logical next step for multifamily development.

GlobeSt.com: What are the benefits and challenges of being so close to Mexico?

Munoz: For some, development activity in the South Bay has to do with the many social and economic attractions related to the region's proximity to Mexico.  The busiest border crossing in the U.S., the San Ysidro Port of Entry is just 10 minutes from Chula Vista—and Tijuana and San Diego share many important economic ties. For a majority, however, it's the area's robust commercial and military development, as well as the close  proximity to central San Diego that is driving the Chula Vista and overall South Bay multifamily market.

GlobeSt.com: What types of capital sources have been most active in the market, and why?

Munoz: Capital sources scale with the size of development. We are seeing private equity investing and renovating in existing housing stock – as well as developing and redeveloping small-scale multifamily projects. Larger developments are typically funded at an institutional level.

GlobeSt.com: Tell me about the properties that are coming to market, and some of the development trends?

Munoz: In addition to the revitalization of the waterfront, a core driver of multifamily growth here has been Millenia—a mixed used development spanning 210 acres in eastern Chula Vista. Designed as a walkable urban village, this mega development offers a variety of multifamily options as well as single-family homes—once complete it will have more than 3,000 residences.

On the trend front in Chula Vista, we are starting to see a lot more communities with greater amenities for the residents, whether this be technologically driven or through the use of spaces. Such amenities include keyless entry, package systems, larger clubhouses, yoga studios, bocce courts, meeting spaces, and high-end interior finishes.

GlobeSt.com: What is your outlook for the multifamily market in the South Bay this year?

Munoz: With central San Diego running out of land for affordable development, Chula Vista is becoming more desirable with the Chula Vista Bayfront master plan and the Millenia master plan leading the way. These master plans are now  firmly in place,  providing a significant boost to economy and job growth in the city.