Virtú Investments Secures Strategic 313-Unit Multifamily Property in San Diego’s Robust Market
In a strategic move that demonstrates insight into the evolving landscape of multifamily real estate, Virtú Investments has recently expanded its portfolio with the acquisition of ALX, a 313-unit multifamily property in the thriving market of San Diego, CA. This addition marks a significant reinforcement of the firm’s presence in Southern California.
With an expert eye for market trends, Virtú identifies San Diego as an ideal investment locale, despite — or perhaps due to — current property valuations that reflect a dip from their 2021 pinnacle. The fundamentals of the San Diego market make it ripe for investment: a constrained housing supply paired with escalating demand sets the scene for anticipated robust rent growth over the coming decade. This growth is underscored by the prohibitive costs of new constructions, which further emphasize the value inherent in acquisitions like ALX.
Michael Green, CEO and Founding Partner of Virtú Investments, concisely encapsulates the firm’s strategy, “The San Diego market is a great example of what we look for when considering new properties – a popular city with low apartment supply, increasing renter demand, and valuations well below their peak. The acquisition of ALX perfectly aligns with this focus, and we look forward to building on this strategy through similar transactions in the near future.”
ALX stands as a testament to the luxurious possibilities of apartment living. Located in San Diego’s Ballpark District, it offers residents both a nexus to the city’s most dynamic districts and a trove of amenities, including a rooftop saltwater pool, advanced fitness center, and a game room, emphasizing the high value of such multifamily developments.
The strategic move to acquire ALX via the Virtú Evergreen Fund is part of a longer trajectory aimed at generational ownership. This fund leverages options such as 1031 Exchanges within to continually defer taxes on gains and cash flow, highlighting Virtú’s commitment to tax efficiency and flexible liquidity for its investors. Since its inception, the Virtú platform has realized a commendable Net IRR of 19.4% over 26 years, holding and operating 23,000 apartments across 33 markets.
This latest acquisition not only aligns with Virtú’s focus on regional demand and strategic valuation but also underscores the company’s standing as thought leaders in the multifamily apartment industry. It sets a clear example for the kind of forward-thinking agility and market acumen required in today’s multifamily investment landscape.