Institutional Property Advisors Closes $40.5 Million Sale of Skyline Apartments in Spring Valley to BRIDGE Housing

SPRING VALLEY, Calif. — Institutional Property Advisors has closed the $40.5 million sale of Skyline Apartments, a 128-unit apartment community in Spring Valley, California, the firm announced Sept. 29, 2026. A joint venture between Stratford Partners and LLJ Ventures sold the property to BRIDGE Housing, which intends to operate it as an affordable housing community.

The transaction equates to approximately $316,406 per unit. Chris Zorbas and Alexander Garcia, Jr., both executive managing directors at Institutional Property Advisors, represented the seller and procured the buyer.

A Rare Transaction in Supply-Constrained East County San Diego

Zorbas characterized the deal as an uncommon event for the submarket. "Skyline Apartments was developed and operated as a market-rate property in supply-constrained East County San Diego," he said. "The asset has experienced strong historical rental demand and will now be dedicated to preserving affordability for tenants. Over the past five years, Spring Valley has seen virtually no transaction activity involving assets of comparable scale, construction vintage, or renovation quality."

Built in 1985, Skyline Apartments has undergone substantial interior and exterior renovations. Garcia noted the property's condition and unit mix as key attributes for the buyer. "The acquisition gives the buyer a well-maintained asset with a desirable unit mix that will provide the community with an affordable housing option for years to come in one of East County's most resilient rental markets," he said.

The property offers one-, two- and three-bedroom apartments. Renovated units include energy-efficient stainless-steel and black appliances, electric heating and air conditioning, and private patios or balconies. Community amenities include a gated entry, swimming pool, sundeck, spa, outdoor kitchen, playground and two laundry facilities.

Location and Accessibility

Skyline Apartments sits in a dense infill neighborhood with direct access to California State Routes 94, 125 and 54, placing it within a short drive of Downtown San Diego and San Diego State University. Rancho San Diego Towne Center, Spring Valley Shopping Center, Sweetwater Lane Community Park, Spring Valley County Park and the 5,800-acre San Diego National Wildlife Refuge are within two miles of the property. Sharp Grossmont Hospital and Scripps Mercy Chula Vista Hospital are within a 10-mile radius.

Affordable Housing Strategy in a Competitive Market

The acquisition shifts Skyline Apartments from a market-rate operating model to an affordability-preservation approach. BRIDGE Housing's purchase of an existing, renovated community avoids the lease-up risk and high construction costs associated with ground-up development in a supply-constrained market.

San Diego's multifamily market has absorbed a significant volume of new supply in recent periods, with trailing 12-month completions reaching 6,793 units and second-quarter 2026 completions totaling 2,330 units — four times the year-earlier figure. Despite that supply pressure, Class B and C properties have maintained materially lower vacancy than newer Class A assets, with first-quarter 2026 vacancy at 3.3% for Class B and C properties compared with 6.4% for Class A properties. Skyline's 1985 vintage and renovated condition position it within that middle-market segment.

The $316,406 per-unit price is below the broader San Diego multifamily average of approximately $398,509 per unit. Average asking rents across the San Diego market have been reported at approximately $2,453 per unit per month, with average cap rates near 4.7%.

About the Parties

Institutional Property Advisors is a division of Marcus & Millichap (NYSE: MMI) focused on serving institutional clients in the acquisition, disposition and financing of institutional properties and portfolios. Chris Zorbas and Alexander Garcia, Jr. are executive managing directors within the division.

Sources

Institutional Property Advisors — Press Release, Sept. 29, 2026