Bosa, the Canadian developer that has made a name for itself in San Diego building high-end condominium towers, has a started leasing its first apartment tower downtown.
The company is wrapping up construction of Diega, a two-tower project that spans a full city block at 702 Broadway.
With 617 apartments, the two towers are 20 stories and 41 stories tall respectively.
Diega has a mix of studios, one-bedroom and two-bedroom apartments including penthouse units on the 41st floor.
Apartment Finder, an apartment listing firm, showed apartments in Diega ranging from 577 square feet to 1,286 square feet.
Excluding penthouse units, Bosa on its website for Diega listed monthly rents ranging from $2,149 to $4,644.
Bosa declined to disclose what it cost to build Diega and didn’t list details on the penthouse units on its website.
Among apartment amenities listed by Bosa are wood style plank flooring, a balcony or deck for most apartments, stainless steel appliances and quartz countertops in kitchens and bathrooms.
Building amenities include a rooftop pool and spa, coworking space, and indoor/outdoor fitness center, a yoga and exercise studio, a spin cycle room with virtual training, a dry sauna, a pet area, and a social lounge.
The project also comes with concierge service and high-speed Wi-Fi in amenity areas.
Bosa’s San Diego residential projects have include Pacific Gate condominiums with 215 units on the downtown Bayfront at 888 West E St. and Savina condominiums with 285 units at 1388 Kettner Blvd., according to the company’s website.
Bosa also recently completed a more than $30 million commercial project downtown that transformed the Paladion indoor shopping mall at 777 First Ave. into a four-story office building with 167,000 square feet of space.
The firm’s entry into the apartment market comes just as San Diego is undergoing a resurgence following a downturn caused by the COVID-19 pandemic, according to the commercial real estate brokerage CBRE.
CBRE reported that sales of multi-family projects soared to $1.16 billion in the fourth quarter of 2020 – a record high for a single quarter.
Annual sales for 2020 was $2.34 billion – lower than 2019 but higher than 2018.
The biggest sale of the quarter was the $312.5 million purchase of Vantage Point at 1281 9th Avenue downtown.
The 40-story project with 679 units was bought by Brookfield from Equity residential.
“Underlying fundamentals like job growth and unemployment largely stabilized by Q4 (the fourth quarter) and signs of recovery were underway, leading to strong multifamily fundamentals,” CBRE reported.
Further evidence of the market’s resilience came from a vacancy rate that fell to 3.3% in the fourth quarter of 2020.
Vacancy rates were the lowest in East County, dropping to 1.7% in El Cajon and Santee Lakes combined.
The vacancy in the combined market of downtown and Coronado was 6.5% in the fourth quarter of 2020 with UTC/La Jolla reporting the highest vacancy rate of 7.6%.
The average rent also rose in the fourth quarter of 2020 to an all-time high of $2,070, according to CBRE.
New construction permits also reached record levels by the end of the year, with permits for 6,454 new condominium and apartment units – the most since 2005, CBRE wrote.