MONARCH AT SCRIPPS RANCH & MONARCH CORPORATE CENTER
Location: San Diego, CA
Acquired: Land in 1999
Site Size: Approx. 15 Acres (Suburban Infill)
Property Type: Mixed-use development featuring Monarch at Scripps Ranch (262 Class A apartment units) and Monarch Corporate Center (two identical 56,202 sq. ft. Class A office buildings)
Development Overview: Related entity acted as General Contractor on apartments, and third-party general contractor hired to build office buildings (apartments and office building I completed in 2002, and office building II completed in 2006)
Total Project Cost: $68.6 million
Equity Source: Monarch Partners’ Equity / Joint Venture with Simpson Housing
Debt Provider: TIAA-CREF (apartments and office building I), and Bank of America (office building II)
Status: Apartments sold December 2005, and Corporate Center sold May 2006
Total Sale Proceeds: Apartments sold for $81.0 million, and Corporate Center sold for $32.2 million

Highlights:
After extensive due diligence, Monarch identified an abandoned K-Mart site as a prime location to reposition and build a mixed-use community featuring luxury apartments and office space. The Monarch-Simpson Housing joint venture team purchased the K-Mart site in 1999. From the beginning, Monarch realized a vision for this underutilized site and successfully promoted this concept to the City of San Diego. Monarch undertook all necessary entitlement work and successfully subdivided the site for residential and office uses.

Phase I of the $68.6 million mixed-use development, comprised of the Monarch at Scripps Ranch apartment community and the first office building, was completed in 2002. Phase II, consisting of the second office building, was completed in May 2006. A related entity assumed the role of general contractor for construction of the apartments, and a third-party general contractor was hired to build Monarch Corporate Center. The Monarch team closely supervised related project sub-consultants’ work and disbursed all construction funds to project contractors.

The 262-unit Monarch at Scripps Ranch is a first-class resort-style apartment community featuring a 1,300 sq. ft. cardio fitness center, sports café, movie theatre, 24-hour resident business center, and resort-style pool and spa. The adjacent Monarch Corporate Center encompasses two identical Class A office buildings with a combined 112,404 sq. ft. of rental space—all on the previously abandoned fifteen acre infill site.