Philadelphia-based BDP Impact Real Estate, which operates an investment fund in partnership with housing-focused nonprofit Community Solutions, acquired the 229-unit Market Street Village Apartments in downtown San Diego for $82.2 million in November 2024.
Local brokers and city officials said the transaction was significant for downtown's growing East Village, where the city has been looking to build up and maintain affordable housing stock. The region is known for apartment prices have increased significantly over the past decade.
Developer and investor BDP Impact, which oversees a portfolio of 823 residential units across six U.S. regions, scouted the San Diego region for three years to find a property that fit its focus of maintaining housing geared to residents earning 60% to 120% of the regional median household income.
Finding affordable housing in the region has become especially challenging for people, including teachers, firefighters and San Diego's large contingent of active-duty military personnel and retired veterans. Veterans, in particular, have been prone to becoming homeless as housing prices have risen, according to local housing advocates.
Market Street Village is part of a city program in which developers can have some property taxes abated in exchange for maintaining rental rates that remain affordable for residents who qualify under the targeted income parameters.
The developer and brokers noted the property offers an array of modern amenities that might not otherwise be affordable to middle-income renters in the neighborhood, including rooftop decks, a spacious pool, a gym with a sauna, a resident lounge with a movie theater, and a large grocery store tenant on the ground floor.
To promote energy conservation, the building is fitted with solar panels that maintain lower electricity costs for residents. The property also has electric vehicle charging stations and bike racks.
For its potential to affect housing fundamentals in a region short on affordable workforce residential units, a panel of local real estate experts chose the transaction to receive a CoStar Impact Award for sale/acquisition of the year in San Diego.
About the deal: BDP Impact Real Estate acquired the 229-unit apartment property, built in 2006 at 699 14th St. in downtown San Diego, from Chicago-based investment firm Equity Residential. The price was $82.2 million.
What the judges said: "Seeing significant investment flow into the city to support housing is critical for economic growth, and the city's involvement in ensuring the right residents benefit from these opportunities is essential," said Christopher Sohaey, managing principal at investment firm MMC Real Estate Holdings. "I’m especially excited to see capital and transactions driving progress in the urban core, particularly in East Village."
They made it happen: Kitty Wallace and Anna Kampling of brokerage Colliers.