Broe Real Estate Group Buys 525 Olive in San Diego in All-Cash Deal, Entering Southern California Multifamily Market

Broe Real Estate Group (BREG), the real estate affiliate of Colorado investment firm The Broe Group, has acquired 525 Olive, a 20-story, 204-unit luxury apartment building in San Diego's Bankers Hill neighborhood, the firm announced Oct. 22. The all-cash transaction was completed in 60 days, and Walker & Dunlop's Hunter Combs advised on the deal.

The acquisition marks The Broe Group's initial entry into Southern California's multifamily market, as part of what the company described as a billion-dollar multifamily initiative.

525 Olive Property Details

525 Olive opened in August 2022 and was named CoStar's 2023 multifamily project of the year. The Class AA property sits on an elevated mesa next to the 1,200-acre Balboa Park and offers views of the downtown skyline and sunsets over San Diego Bay.

Amenities include a 20th-floor SkyClub rooftop retreat with a rooftop swimming pool, sun club and lounge. The building provides access to downtown San Diego and North County job centers, local universities and coastal recreation destinations, the firm said.

Broe Real Estate Group Executives Comment

"525 Olive is San Diego's premier luxury living community in San Diego's most desirable submarket," said BREG Senior Vice President of Investments Milan Gutesha. "San Diego's dynamic economy, high-quality work force, and exceptional quality of life made this market a priority for our multifamily expansion. This acquisition reflects the very best of San Diego as we continue to explore further market expansion."

BREG Executive Vice President of Portfolio Management Brian Chen also commented on the acquisition. "Broe's award-winning multifamily communities all combine exceptional location, luxury, and quality. 525 Olive embodies these core pillars," Chen said. "This is a generational investment, and we are committed to building enduring relationships with the community and residents."

The Broe Group's Southern California Entry

Founded in 1972 by industrialist Pat Broe, The Broe Group manages a $7 billion portfolio of multifamily, commercial, industrial and rail assets. The company has existing rail and real estate holdings in California, but the 525 Olive purchase is its first move into the Southern California multifamily sector.

Broe Real Estate Group acquires, develops and manages commercial real estate assets. Affiliated companies own and manage office and industrial properties, medical office buildings and multifamily communities across the country.

San Diego Multifamily Market Context

The deal comes as San Diego's multifamily market has moved into a more balanced phase than during the 2021-22 boom. Average multifamily cap rates reached approximately 4.89% in the second quarter of 2026, while average pricing was about $364,801 per unit, 5.4% below the 2022 peak. Northmarq reported a year-to-date average cap rate of 5.0% in the third quarter, with transactions generally ranging from the mid-4% range to the low-6% range.

Vacancy in San Diego reached 4.8% in the first quarter of 2026, the highest level since 2010 but below the 6.8% national average. Northmarq projected vacancy to reach 5.3% by the end of 2026. Moody's expected nearly 5,900 new units to enter the market in 2026, while Northmarq forecast roughly 6,400 completions, nearly twice San Diego's long-term annual average.

Rent growth has been modest. Average rent was $2,764 per month in the second quarter, up 0.4% year over year, while third-quarter asking rents were $2,621, up 1.2% annually. Net absorption totaled 3,570 units in the second quarter, up 185.1% from the prior year.

Class A properties face more supply pressure than other segments. Class A vacancy was 6.4% in the first quarter, compared with 3.3% for Class B and C properties. Downtown San Diego recorded an 8.5% vacancy rate in the second quarter, although rents there rose 3.0% over the prior year.

Outlook

For Broe Real Estate Group, the acquisition provides a recently built asset in Bankers Hill as a base in Southern California. Gutesha said the firm continues to explore further market expansion. The performance of 525 Olive will unfold against a market of rising vacancy, modest rent growth and a heavy delivery pipeline, particularly in the Class A segment.