Harbor Group International LLC and Azure Partners LLC have announced their joint venture for the acquisition of Jefferson Vista Canyon, a 480-unit, Class A apartment community in Santa Clarita. HGI and Azure acquired the property from JPI. JLL brokered the transaction and arranged a $173 million floating rate loan on behalf of HGI and Azure.
The Jefferson Vista Canyon Apartments are part of a 185-acre, mixed-use master-planned development, designed to offer residents convenient and walkable access to employment, recreation and entertainment options. At completion, the development will feature 650,000 square feet of office space and 165,000 square feet of retail, and will include an 11-acre park and direct access to 10 miles of hiking and walking trails. The city of Santa Clarita will construct a bridge across the Santa Clara River connecting the development with Soledad Canyon Road, providing an essential access point to complement the expected increase in resident and visitor density to the micro-location.
The community is centrally located and easily connects residents to major employment and lifestyle nodes within the Santa Clarita Valley, the neighboring San Fernando Valley and throughout Greater Los Angeles via Highway 14 and Interstate 5. The property offers an embedded Metrolink commuter rail and bus transfer station, which will provide residents additional modes of access to major employment and entertainment centers in Greater Los Angeles. The Santa Clarita region is proximate to a range of employers within aerospace and defense, medical devices and biotech, advanced manufacturing, digital media and entertainment, and information technology.
“The Jefferson Vista Canyon community provides the accessibility, convenience and connectivity today’s residents are seeking,” said HGI President Richard Litton. “This acquisition highlights HGI’s investment strategy of acquiring properties in well-located, dynamic markets with strong employment fundamentals. We look forward to expanding our footprint in Southern California.”
Bryant Ferber, Azure’s managing director and head of acquisitions, added, “We are excited to announce our first acquisition in California, and expect this transaction to serve as a springboard to more opportunities in the western United States as we seek to expand our presence in the region. Jefferson Vista Canyon aligns perfectly with our core investment strategy to acquire best-in-class assets in submarkets with strong growth trajectories.”
The JLL Capital Markets team representing the seller was led by Managing Director Peter Yorck and Director Nick Lavin. The JLL Capital Markets Debt Advisory team representing the borrowers was led by Managing Directors Brandon Smith, Annie Rice and Jamie Leachman.
“This luxury asset had a tremendous lease up over the past 12 months and will soon reach stabilization, demonstrating strong renter demand for this product and location,” said Yorck. “The sale of Jefferson Vista Canyon indicates continued robust investor interest in more suburban pockets of Los Angeles County, such as Santa Clarita.”
Built in two phases from 2020 to 2021, Jefferson Vista Canyon features contemporary finishes and amenities unique to other communities in the area, including resort-style pools and a rooftop deck. Interior units include a mix of studio, one-, two- and three-bedroom layouts.
Jefferson Vista Canyon adds to HGI’s Southern California multifamily portfolio and marks the firm’s seventh multifamily investment in the region.