Virtú Investments, a multi-family real estate investment firm, has acquired ALX, a 313-unit building in the East Village.
The acquisition of ALX, at 300 14th St., strengthens Virtú’s position in Southern California, for a firm primarily engaged in the acquisition and management of properties in the western United States.
Virtú, headquartered in the Bay Area, sees San Diego as an ideal location for investment based on the city’s limited housing supply and current property valuations that have fallen to a low point from their 2021 peak.
The local market is expected to see strong rent growth over the next decade, driven by both growing demand and supply constraints, as rising construction costs greatly reduce the viability of new multi-family developments.
“The San Diego market is a great example of what we look for when considering new properties – a popular city with low apartment supply, increasing renter demand and valuations well below their peak,” said Michael Green, CEO and founding partner of Virtú Investments. “The acquisition of ALX perfectly aligns with this focus, and we look forward to building on this strategy through similar transactions in the near future.”
Located blocks from Petco Park and the downtown San Diego Public Library, ALX is a luxury high rise with a range of amenities including a rooftop saltwater zero-edge pool and spa, a fitness center and game room.
Virtú acquired ALX primarily through the Virtú Evergreen Fund, an open-end fund launched in 2015 for generational ownership, long-term compounding, tax efficiency and flexible liquidity.
The fund, which recently reopened to new commitments, is designed to take advantage of transactions that allow for perpetually deferral of taxes on gains and cashflow. The Evergreen Fund is a key strategy within Virtú, which has owned and operated 23,000 apartments across 33 markets and realized a net internal rate of return of 19.4% over 26 years.