Joint venture buys San Diego-area 55-plus complexes 

MG Properties sells 551 units in Escondido to group led by Eagle Properties 

The Hendrix Apartments is one of the two senior housing properties that just sold in North San Diego County. (CoStar)

MG Properties has sold a pair of age-restricted multifamily complexes in Escondido, California, totaling 551 units to a joint venture led by Eagle Partners and Affordable Housing Access Inc. for $162.5 million, or $294,918 per unit.

The portfolio consists of the Hendrix Apartments, a 326-unit, 11-building complex built in 1987, and the Hadley Apartments, a 225-unit, 10-building property completed in 1985. The three-story, garden-style complexes are a mile apart in North San Diego County’s North I‑15 Corridor, an area with historically strong renter demand for its relative affordability, access to employment centers in Escondido and San Marcos, and proximity to healthcare, retail and community services.

The acquisition was completed in partnership with Red Stone Equity Partners, JPMorgan Chase, the California Statewide Communities Development Authority and Affordable Housing Access Inc. In connection with the purchase, public records show two loans totaling $104.4 million recorded through JPMorgan Chase Bank: one for $61.39 million secured by the Hendrix and one for $42.97 million secured by the Hadley.

The properties last changed hands in 2016 for a total price of $82.4 million, or $153,212 per unit. The current deal price was just above the three-year average for senior multifamily sales in the San Diego market of $292,000 per unit across eight trades totaling roughly $173 million.

The broader San Diego multifamily market continues to absorb elevated levels of new supply. Countywide vacancy reached approximately 5.8% in early 2026 following a surge in apartment completions in 2025, while rent growth softened and increased use of concessions. The North I‑15 Corridor has followed a similar near-term pattern, with vacancy rising to 6.8% in the first quarter, above its long-term average.

Within that environment, recent construction in the North I‑15 Corridor has largely targeted higher-income renters, contributing to near-term absorption pressure at the upper end of the market. More than 100 units have come on the market over the past two years, reflecting a development cycle focused on newer, market-rate product rather than age-restricted housing.

Age-restricted communities such as the Hendrix and Hadley serve a distinct renter segment, shaped less by new-build competition and more by demographic and lifestyle considerations. Demand for 55-plus housing in San Diego County has been supported by an expanding senior population, with residents often prioritizing access to services, predictable housing costs and long-term stability over newer construction. Rents in the Hadley and Hendrix apartments average a bit over $2,000 a month.

Eagle Partners said the acquisition aligns with its strategy to expand an attainable housing platform focused on long-term ownership and affordability preservation. The firm plans to implement a long-term affordable housing preservation strategy alongside a targeted capital improvement program, with upgrades expected to focus on common areas and amenities.

“This transaction represents a meaningful milestone in scaling our attainable housing platform,” Eagle Partners said in a release. “It reflects our commitment to long-term affordability, disciplined execution, and responsible community stewardship.”

Source: CoStar