L.J. Melody & Co. provided the funding to the borrower and subsequently sold the loan to Freddie Mac. Mark McGovern in L.J. Melody's San Diego office handled the transaction.

Although demand is down somewhat from last year, the San Diego County economy is keeping the multifamily market strong, according to a recent report from Hendricks & Partners. Despite low interest rates, the market continues to benefit from rising single-family home prices, ensuring that vacancies remain low, and investor interest remains high.

The overall average vacancy rate increased from 2.4% in the first quarter of 2001 to 4.6% in the first quarter of 2002, according to the report. However, some owners of higher-end complexes are discounting rents to attract tenants as renters move to less-expensive suburbs.