REGENTS LA JOLLA
Location: La Jolla, CA
Acquired: Land in 1997
Site Size: Approx. 8 Acres
(Suburban Infill)
Property Type: 574 Class A Apartment Units
Development Overview: Related entity acted as General Contractor; Phase I (250 units) and Phase II (324 units) completed over three years
Total Project Cost: $77.0 million
Equity Source: Monarch Partners’ Equity
Debt Provider: TIAA-CREF
Status: Phase I sold October 2004, and Phase II sold December 2005
Total Sale Proceeds: Phase I and Phase II sold for a total of $191.3 million

Highlights:
In 1997, Monarch acquired approximately eight acres of infill land in La Jolla, California. The site was originally zoned for a mixed-use residential and commercial development consisting of approximately 250 units and up to a thirteen-story office tower with some retail. Due to the steady influx of transplants into the Southern California region and an address coveted around the world, Monarch identified an opportunity to leverage the unparalleled coastal La Jolla location and build first-class amenities that would attract a discerning customer.

Upon acquisition, Monarch undertook the necessary entitlement work and successfully rezoned the site to a less intense development use consisting of all residential units. A related entity undertook the general contracting work, overseeing all phases of the planning and construction processes as well as the work of project sub-consultants. Additionally, Monarch had the foresight during the development and hold period to place a condominium map on the site. This action broadened potential exit strategies by positioning the Regents La Jolla community to discriminating institutional buyers and condominium converters.

Regents La Jolla was built as a four-story building over subterranean parking. The community is comprised of 574 luxury one-, two-, and three-bedroom apartment units as well as a 9,000 sq. ft. recreation center. The recreation center includes a state-of-the-art cardio theater, sports club with satellite televisions, business center featuring a teleconferencing and meeting room, poolside cabanas, and full-time concierge. Regents La Jolla was also the first rental community in San Diego to offer a 24/7 courtesy patrol service.

Monarch Group received numerous awards for this project, including a prestigious Mark of Excellence award from the San Diego County Apartment Association. Regents La Jolla raised the bar for Class A multifamily communities in the surrounding UTC/Golden Triangle submarket and greater San Diego County.

Based upon an aggressive leasing program executed by the Monarch team, Regents La Jolla achieved approximately 94% to 97% stabilized occupancy rates and consistent tenant retention of approximately 68% during Monarch’s ownership. Additionally, Monarch implemented “first to market” advertising mediums, including human directionals, virtual reality tour, and radio promotion.

Phase I of Regents La Jolla was sold in October 2004, and Phase II was sold in December 2005.