CBRE Arranges Sale of Palmilla Apartment Community in San Diego

CBRE has negotiated the sale of Palmilla, a 203-unit apartment community located at 5474 Reservoir Drive in central San Diego, Calif. A partnership between Bridge Investment Group and Ethos Real Estate acquired the garden-style community.

CBRE's Rachel Parsons, Derrek Ostrzyzek, Mike Murphy and Kenji Thomas represented the seller, 29th Street Capital, in the transaction. Jesse Weber and Scott Peterson of CBRE Debt & Structured Finance arranged the financing on the sale.

The six-building community offers a mix of studio, one-, and two-bedroom floor plans. Amenities include two swimming pools, a tennis court, a sauna, two fitness facilities, two on-site laundry facilities, and a picnic area with barbecue.

Palmilla’s central San Diego location is strategically located in San Diego’s College area, just one mile from San Diego State University. Additionally, the property is contiguous to the East Campus Medical Center at UC San Diego Health and within a block of the UCSD Health East Station for the Trolley’s green line.

“Built in 1965, 54% of the apartments remain in ‘classic’ condition, providing a compelling opportunity to enhance interiors and drive rental rates,” said Parsons. “Palmilla’s proximity to major employment centers, educational institutions, and healthcare facilities makes it a desirable option for residents, ensuring continued demand and long-term investment potential."