Eagle Parters, CGI Buys Highlight Transaction ‘Surge’ in 2026

REAL ESTATE: Eagle Partners, CGI Buys Highlight Transaction ‘Surge’ in 2026

SAN DIEGO COUNTY – An El Segundo real estate investment firm, Eagle Partners, has acquired two Escondido apartment complexes meant for tenants who are at least 55 years old.

The firm paid $162.5 million for Hendrix Apartments and The Hadley Apartments.
Combined, the two Escondido complexes have 551 one-bedroom and two-bedroom apartments.

“Eagle Partners is committed to a strategy focused on preserving much needed attainable housing,” said Shahny Lutfeali, a managing partner of Eagle Partners.

“The active adult sector continues to have strong demographic tailwinds, and our strategy focuses on preserving an affordable housing option for a critical demographic is San Diego, fulfilling our dual mandate of enhancing the communities we operate in and providing compelling returns for our investment partners.”

Without giving details, Lutfeali said that planned improvements “will target deferred maintenance aimed at improving the quality of the asset and targeted interior renovations.”

Helping with the acquisition were Red Stone Equity Partners, JP Morgan Chase, The California Statewide Communities Development Authority and Affordable Housing Access.

The deal was Eagle Partners’ second acquisition in Southern California, following its November $107 million purchase of the 350-unit Hills at Hacienda Heights apartments in Los Angeles County.

Built in 1982 on an 8.3-acre site at 439 W. El Norte Parkway, The Hadley Apartments has 225 apartments averaging 780 square feet in 10 three-story buildings totaling 175,000 square feet and 272 parking spaces.

Totaling 350,000 square feet, The Hendrix Apartments were built in 1987 with 326 apartments, averaging 730 square feet in 13 three-story buildings and 422 parking spaces.

The property was sold by MG Properties and Intercontinental Real Estate Corp.
The complexes were 93% leased at the time of sale.

Belle of the Ball

In another recent transaction, a Lincoln Park building, with 144 apartments described as workforce housing, Creekside Villas was sold for $30 million to CGI, a Los Angeles investment firm.

Built in 1988, Creekside Villas is unusual because it includes 44 four-bedroom apartments meant for larger families, according to Stew Weston of Matthews, who brokered the deal along with Rosie Cooper of Mathews, a commercial real estate investment and technology firm.

Creekside Villas was 95% leased at the time of the sale, Weston said, adding that the complex stands out in a market where most of the new construction has been high-priced Class A apartment towers, some of which have been offering concessions to attract tenants.

“Your workforce housing is outperforming your Class A because of demand drivers,” Weston said, explaining that demand is particularly intense for more affordable housing.

Weston said that he expects to see a surge in transactions for the rest of 2026 into 2027, as investors who had been sitting on the sidelines get back into the market.

“Anything that comes on the market in San Diego will transact,” Weston said. “San Diego happens to be the belle of the ball right now. Everyone wants to be in San Diego.”

Source: SD Apartment Buildings Attracting LA Investors – San Diego Business Journal