San Diego’s biggest new apartment complex opens with average rents topping $5K

San Diego renters are no strangers to high prices, but a new Serra Mesa complex might cause sticker shock.

AMLI Aero has an average rent of $4,014 a month for a one-bedroom unit, said real estate tracker CoStar, $5,049 for a two-bedroom, and $6,136 for three bedrooms. Its first residents move in Friday.

It’s not the most expensive complex in the county, but it exceeds average rents by thousands of dollars. Other than just its cost, it stands out for another reason: It is the biggest new apartment complex — with 442 apartments at final buildout — in San Diego County since the opening of the 480-unit Avalyn complex in Chula Vista in 2022.

Higher rents are potentially possible because the new complex, at 3585 Aero Court, is close to the region’s biggest biotech and tech companies, including Qualcomm. It has two marketing tools: It is near the popular Convoy District, where rentals are tough to come by, and it went all in on amenities.

“We think people will be attracted to what we’re offering,” said John Readey, vice president of development for AMLI, during a tour.

AMLI Aero looks a bit like a high-end hotel and, if a person didn’t know better, might confuse it with the Sheraton hotel across the street. Yet the high-end finishes come with an added cost.

Alan Nevin, economic researcher for construction management firm Gafcon, said it was fair to say Chicago-based AMLI Residential is testing the market with its rent. He said he had a hard time believing renters, even affluent ones, would be eager to sign a lease there.

“I think they are $1,000 a month too high,” Nevin said.

He cited another nearby project as an example, the Alexan Camellia complex, which is set to open in the winter. It is in the Convoy District and also has a lot of amenities, but has started advertising rentals lower than AMLI Aero. Alexan Camellia’s average rent for a studio is $2,729 a month, $3,256 for a one-bedroom and $4,056 for a two-bedroom.

Readey said the company has confidence in AMLI’s rent prices because their biggest interest out of the gate has been for a dozen or so of the most expensive top floor units. Rent prices increase in the building, like almost all apartment complexes, the higher up you go.

Albert Gonzalez, community manager of AMLI Aero, said they expect renters to come from a variety of backgrounds but might lean toward affluent younger workers.

“A lot of young business professionals will be naturally attracted to this,” he said.

AMLI Aero has rent deals available for some units: One month free for a 12-month lease and two months free for a two-year lease. The complex is only opening its first 97 units on Friday, with the rest opening in phases until the beginning of 2026.

Next month, the complex will add studios, but not at a huge discount. Gonzalez said those units will start at $3,500 a month. There are nine subsidized units in the complex for people making 60% of the area median income, about $69,480 a year for an individual. The list to apply for the subsidized units closed after applications reached more than 200 people.

All renters will have access to the many amenities at the complex. The biggest is a rooftop pool, 50 feet long and 25 feet wide, with a 24-foot tall jumbotron. The Circa Las Vegas hotel has something similar, which has been heavily promoted during San Diego Padres TV broadcasts, where visitors can watch a 40-foot screen from six pools. The difference here is that the pool will only be for tenants and their guests.

The TV is wired up to cable, good for live events, and the complex has subscriptions with all the major streamers, too. The controls allow for four screens to display at once. Gonzalez said he envisions not just sports on the jumbotron but movie nights and viewings of popular shows like “The Bachelor.”

There is also a 3,000-square-foot gym, with outdoor/indoor space and a yoga room; a lounge with fireplaces called the Fireside Landing; a terrace that offers panoramic views; a coworking lounge and (leasable) private offices, and a small putting green in the entry courtyard.

It has other things that are fairly standard with new apartment buildings: Barbecue pits, EV charging stations, bike storage, an area for dogs and a package room for online shoppers.

AMLI Aero has an eight-story garage that has one floor below ground and the rest adjacent to the building. Elevators open up on both sides so the plan is to have people who, say, rent on the sixth floor be able to park on the sixth floor so it’s not a big walk to a vehicle. Parking is included in rent, and is not a separate charge like you see at most new buildings. Studios and one-bedrooms will be assigned one spot, and two- and three-bedrooms will have two spots.

The complex was built on the site of a former industrial building previously occupied by CP Kelco, a manufacturer of specialty gums and ingredients that was later acquired by British food and beverage supplier Tate & Lyle. Construction started on AMLI Aero at the start of 2023.

AMLI Aero is the ninth most expensive San Diego County apartment complex. The highest is a 19-unit complex in Solana Beach called Sandbox Solana, which charges an average $8,905 a month.

The complex opens at a time when rent growth has been sluggish in San Diego County. Average rents have increased roughly 1% in two years, its slowest since the Great Recession. Most experts have cited increased multifamily building as the main reason for a slowdown, which increases landlord competition for renters.