MONARCH AT CARMEL VALLEY
Location: San Diego, CA
Acquired: Land in 1999
Site Size: Approx. 7 Acres (Suburban Infill)
Property Type: 225 Class A Apartment Units
Development Overview: Related entity acted as General Contractor (Completed in 2001)
Total Project Cost: $40.7 million
Equity Source: Monarch Partners’ Equity / Joint Venture with Simpson Housing
Debt Provider: Freddie Mac (Apartment Loan)
Status: Sold October 2004
Total Sale Proceeds: $83.0 million

Highlights:
Through a joint venture with Simpson Housing, Monarch acquired the site in 1999. While already zoned for residential use, Monarch realized the tremendous potential of the site based upon its location in one of the most coveted enclaves of San Diego’s North Coast, only minutes away from Torrey Pines State Beach and the Del Mar Race Track. Monarch at Carmel Valley was completed in 2001.

A related entity assumed the role of general contractor through the construction process and oversaw the work of all project sub-consultants, including engineers and architects. Like Regents La Jolla, the 225-unit Monarch at Carmel Valley apartment community was developed as a first-class community featuring a resort-style pool and spa as well as a 5,200 sq. ft. clubhouse featuring a grand living room with fireplace, full-service gourmet kitchen, modern fitness facility, 24-hour business center, and theatre lounge for entertaining. The project was awarded the prestigious three-story Mark of Excellence award by the San Diego County Apartment Association.

Monarch successfully pre-leased 45% of the community prior to having models or amenities to show. Upon entering the submarket in 2001, the community achieved average rents of approximately $1.71 per sq. ft., with little or no concessions. At the time, the average submarket rent was approximately $1.60 per sq. ft., and over 2,500 new units were coming on line. The community also consistently achieved tenant retention of over 63% during Monarch’s ownership, well above the industry average of approximately 50%.

Monarch had the foresight during the development and hold period to place a condominium map on the site in order to provide multiple exit strategies. Upon realizing a vision and transforming the site through the planning, construction, lease-up, and stabilization stages, Monarch at Carmel Valley was sold in October 2004.