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Published on January 13, 2025
Luxury Kearny Mesa Community Vive Luxe Snags $188M Loan Amid San Diego's Housing Market ConfidenceSource: Google Street View

San Diego's Kearny Mesa neighborhood is now home to a $188 million piece of real estate financing news as Sunroad Enterprises secures a substantial loan for Vive Luxe, a luxury multi-housing community. Vive Luxe, a 442-unit complex, offers a blend of urban accessibility and suburban luxury, boasting a five-story Class-A building completed in 2021 situated approximately nine miles north of downtown at 4890 Sunroad Centrum Lane. According to JLL Newsroom, the fixed-rate loan was arranged with backing from accounts managed by KKR, demonstrating the investment sector's continued confidence in San Diego's housing market.

With a notable 95 percent occupancy rate, Vive Luxe has quickly attracted residents to its one-, two-, and three-bedroom apartments, with features designed to appeal to those with a penchant for modern living. The facility does offer some alleviation to the housing crunch with its inclusion of 23 affordable homes. "Financing Vive Luxe illustrates the capital market’s conviction of the long-term stability and growth in San Diego," Aldon Cole, Senior Managing Director at JLL, per JLL Newsroom. "Despite this year’s volatility and uncertainty, the strength of Sponsor, combined with an A+ Core asset quality and which continued to exhibit strong underlying fundamentals prevailed, and we were very pleased to see this Lender provide a long-term solution for this generational asset."

Meanwhile, the larger San Diego multifamily housing market has shown signs of cooling despite a robust year in 2024, with advertised asking rents witnessing a slight decrease and occupancy rates dipping modestly. However, this context makes the success of Vive Luxe even more notable. San Diego's growing job market has significantly influenced the market, particularly in sectors like technology and life sciences, which continue to draw skilled workers. Kip Malo, JLL managing director, highlighted to Multi-Housing News, "San Diego's multifamily thrives due to its strong job market in high-growth sectors like technology and life sciences, attracting a skilled workforce, while persistent barriers to homeownership keep even top earners in the rental pool longer, sustaining demand for quality multifamily housing."