Walker & Dunlop, Inc. arranged the $185,000,000 sale of Preserve at Melrose, a 410-unit multifamily property in Vista. The company said the sale represents the second-largest single-asset transaction in San Diego and the fifth largest in California year-to-date in 2024.

The Walker & Dunlop Investment Sales team, led by Hunter Combs, represented the seller, a local San Diego based group, and the buyer, Mesirow.

“San Diego remains a top target nationally for investors, making up 10% of all U.S. multifamily transactions over $150 million and 23% of those in California, year-to-date since 2023,” said Combs. “San Diego’s market strength is propelled by its historically consistent rent growth, strong fundamentals and high barriers to entry. The influx of life science surrounding UCSD and big tech companies establishing their presence here, in addition to the longstanding defense industry, underscores San Diego’s exceptional market resilience and attractiveness for investors.”

Universal Music Group’s Santa Monica headquarters office has a new owner in Drawbridge Realty.

San Francisco-based Drawbridge paid New York-based Clarion Partners $185 million, according to an industry source, for the 225,773-square-foot office building. The purchase price pencils out to about $819 per square foot.

Drawbridge represented itself in the deal. Newmark’s Kevin Shannon, Alex Foshay, Ken White, Rob Hannan, Laura Stumm and Michael Moll represented the seller.

The Class A space at 2220 Colorado Avenue totals six stories and is fully occupied by Universal Music Group, which reportedly holds its lease there until July 2036.

The music giant first moved there in 1999, the same year the property was built, bringing workers from across its former offices in West Hollywood and Los Angeles under one roof. The building is outfitted with two recording studios, conference areas, parking, on-site cafeteria and outdoor workspaces.

Arboretum Gateway, the building’s official name, is located near other major media and entertainment companies, including Starz, AMC Networks, Amazon.com, Roku and Sony.

The deal marks Drawbridge’s first buy on Los Angeles’ Westside, with the firm’s existing portfolio totaling more than a dozen properties in Westlake Village, the Bay Area, Orange County and San Diego County among other markets.

Santa Monica’s office market had an overall vacancy rate of 21.3 percent, with average asking rents of $6.01 per square foot in the second quarter, according to CBRE data. That compares with a 21.6 percent overall vacancy and average asking rent of $5.64 per square foot in the same quarter for the overall Westside, which includes Beverly Hills, Century City, Culver City and West Hollywood.  

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Drawbridge Realty has acquired 2220 Colorado Ave., a 225,773-square-foot headquarters building in Santa Monica’s Silicon Beach neighborhood, for a reported $185 million. The building is 100% triple-net leased to Universal Music Group (UMG) as its operational headquarters.

“This is a high-quality property with a strong, longtime tenant and a very creative build-out that establishes the building as one of the signature assets in Santa Monica,” said Jaden Rosselli, VP of investments & asset management, Drawbridge Realty. “It’s a wonderful addition to our national portfolio.”

The seller, Clarion Partners, was represented by Newmark’s Kevin Shannon, Alex Foshay, Ken White, Rob Hannan, Laura Stumm and Michael Moll. UMG recently signed a long-term lease extension at the property.

Also known as Arboretum Gateway, 2220 Colorado Ave. has two UMG-operated recording studios, several conference facilities, secure parking with direct elevator access, an onsite food commissary and coffee bar, collaboration areas and outdoor decks.