Society management

The Company, a Mission Valley apartment complex with a rent of $3.7,000, completes 3rd tower with plans for a 4th

You might not need a surfboard storage room, or even a surfboard, but a new apartment complex in Mission Valley has just about every amenity you can think of. .

The Society, San Diego’s largest new apartment project — and one of its most expensive — just completed its third 240-room tower and has begun work on a fourth, which is slated to open in April. It has average rents of $3,700 per month and offers some of the largest numbers of amenities ever seen in a regional project, including an “influencer station” for selfies, a surfboard room and a fireplace. electric in the mail room.

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The $487 million project will have 840 apartments, the most of any apartment complex in San Diego County in seven years, upon final construction. Developer Holland Partner Group said it had no trouble finding tenants on the project, despite rents being higher than much of the area.

Ryan Trainor, senior regional property manager for Holland, said the majority of tenants are between 25 and 40 years old and are fans of the expansive amenities. He said many are drawn to the building as a first place after moving to San Diego.

“They see this as a big opportunity,” Trainor said.

The company’s construction comes at a good time for the developer as the number of available apartments in San Diego County hits its lowest level in years. The countywide vacancy rate is 2.6%, real estate firm CoStar said. This is one of the lowest rates in 20 years, and has been falling every quarter since the end of 2019, when it was 5.22%.

With limited options and a countywide average rent of $2,306 per month, the sticker shock at The Society seems more like a sign of the times.

The average rent at The Society for a studio apartment is $2,252 per month, CoStar said. The average rent goes up from there: it’s $3,305 for a one-bedroom apartment, $4,157 for a two-bedroom apartment, and $5,059 for a three-bedroom apartment.

Amenities are wide and can help a tenant avoid having to subscribe to a gym, among other things. There’s a pet spa, 3,257-square-foot gym (and smaller ones in other buildings), yoga rooms, bike storage, pool and hot tub, lounges , barbecue grills, electric vehicle charging stations, coworking space and conference rooms, coffee stations, and — almost like a swanky hotel — concierge services.

Adding to the ambience is a scent of green moss and bamboo — described as a “smell of green leaves” with a hint of lime and cucumber — that pervades every building. Holland said the idea is that the scent will create continuity between the four separate buildings.

The newly completed building, called Margo, features an 1,845-square-foot club room with a large magnetic Scrabble board, kitchen, air hockey table, jukebox, and “influence station,” where a renter can put their phone in a ring light stand for the perfect Instagram shot.

Residents of The Society will have to pay for parking, but it’s cheaper than most downtown projects. It costs $25 for a single seat and $100 for a two-car tandem seat. It’s becoming more common across the city as officials have pressed developers to unbundle parking fees to benefit renters who choose not to use a car.

With vacancy rates so low, it might seem like so many amenities are unnecessary, but that’s not the case, said J. Kevin Mulhern, senior vice president of real estate firm CBRE in San Diego. He said the cost of offsetting ever-increasing construction and land acquisition costs must be covered by high rents – and one way to do that is to attract tenants with plenty of amenities.

“Amenities are your draw,” he said. “That’s how we get residents in through the front door. “

He said the conveniences are similar to gym memberships, where people sign up but never go. If people don’t use the selfie station, for example, some think it might be more cost-effective to look elsewhere. Rental website ApartmentAdvisor published a study at the end of 2021, using more than 250,000 apartment listings, which indicated that many features drove up rents: on-site gyms add 10%, 8% for a washer-dryer and 8% for a swimming pool.

Mulhern said another big reason why developers got into conveniences is that many people are still working from home. This means many residents will be spending a lot of time in the property, unlike a few years ago when most apartment complexes were cleaned in the morning.

“Residents need more amenities and distractions because they’re spending so much more time at home,” he said.

Vancouver, Wash.-based Holland Partner Group bought the 10-acre site from the owners of Town & Country Resort for $82 million in 2018. It arrived alongside the more than 60-year-old was planning his own $70 million makeover.

As surprising as The Society’s rents are, the resort isn’t the most expensive in San Diego County. That distinction belongs to Ocean House of La Jolla on Prospect. The 53-unit complex has an average rent of $6,678 per month. It’s also steps from the beach and has ocean views that few apartments in San Diego County have.

Holland Partner Group has not included any subsidized accommodation in The Society project. The company had to pay the city $9.8 million in fees for not including rent-restricted housing. San Diego can use the funds to build its own subsidized apartment building, but housing officials often say they’d rather a developer put affordable housing in their project because it’s cheaper for the city.

Although Holland calls The Society “San Diego’s largest multi-family community” in press releases, it’s not. The largest remains Casa Mira View in Mira Mesa with 1,848 units. Other large complexes are La Jolla Crossroads with 1,500 units, Costa Verde Village in University Village with 1,263 units, and Rio Vista Promenade in Mission Valley with 970 units.