SAN DIEGO, CA – February 22, 2019 – HFF announces that it has arranged the sale and acquisition financing for Regents La Jolla, a 333-unit, mid-rise multi-housing building in La Jolla, California.

HFF marketed the property on behalf of the seller, LaSalle Investment Management, Inc.  Raintree Partners purchased the asset free and clear of existing financing.  Additionally, the HFF team worked on behalf of the new owner to secure 10-year, fixed-rate financing with Pacific Life Insurance Company.

Regents La Jolla consists of nine four-story buildings and one single-story cabana building housing a mix of one- and two-bedroom units averaging 966 square feet.  Completed in 2000, the property is part of a 574-home development that includes 241 condominium units not included in the sale.  The 96-percent-occupied community is situated on approximately 8.48 acres at 9253 Regents Road.  Located within the University Town Center (UTC) neighborhood, Regents La Jolla is surrounded by La Jolla’s demand drivers, including being half a mile from the University of California, San Diego, which is the No. 1 employer in San Diego; several of the area’s premier medical/research facilities; Westfield UTC Mall; and 14 million square feet of commercial space.  Community amenities include two swimming pools, a fitness center, sports lounge, movie theatre and professional entertaining kitchen.

“The rare opportunity to acquire a Class A trophy asset in the UTC submarket, coupled with the $1 billion redevelopment at the Westfield UTC Mall as well as the $2 billion Mid-Coast Trolley project, created a high level of interest,” Combs said.  “The recent additions of Amazon and Apple to the submarket, along with the continued growth of UCSD, will keep demand for quality assets such as this robust.”

The HFF investment advisory team representing the seller included senior director Hunter Combs and senior managing director Sean Deasy.

HFF’s debt placement team representing the borrower consisted of senior managing director Charles Halladay and director Chris Collins.

“We view the acquisition of Regents La Jolla as a strategic long-term investment and a great addition to the 302-unit community we currently own within walking distance of Regents,” said Ian Couwenberg, director of Acquisitions for Raintree Partners.  “The evolution of UTC into a major CBD within the San Diego metro area and clear commitment of neighboring owners as well as the city to re-invest in apartment communities, medical campuses, office, retail and infrastructure made the acquisition of Regents La Jolla an exciting opportunity.”

On October 14, 2016, Security Properties and Pacific Life Insurance Company purchased One Jefferson, a 347-unit, Class A multifamily property located in Lake Oswego, OR, for $78,000,000.

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The property is located in one of Portland's most prominent suburbs, Lake Oswego. Lake Oswegoresidents boast an average household income in excess of $84k/year and is also home to some of the area's most expensive single-family real estate (average home price of $585k). The area is also characterized by limited future supply of multifamily units, and access to top-performing schools.

One Jefferson Apartments is a garden-style apartment community that was constructed in 1987 and 1990.  Unit interiors currently contain a variety of interior finishes.  Due to this inconsistency, Security Properties will be focusing on establishing a uniform spec level.  By combining the renovation of unit interiors with greatly improving amenity areas and overall aesthetics, Security Properties will re-establishOne Jefferson as the area's premiere multifamily community.

Barrett Sigmund, Sr. Director at Security Properties says they acquired this property because, "This deal epitomizes what we look for in value-add projects.  Lake Oswego boasts some of the best schools, demographics and proximity to jobs of any suburban Portland submarket.  Additionally, given the barriers to entry and limited future supply, there should be little new product in the submarket for the foreseeable future.  This dynamic allows us to reposition the property and provide residents a best-in-class physical asset on par with the A+ location."

The property will be managed by Security Properties-affiliate Madrona Ridge Residential.