According to a report by San Diego-based Burnham Real Estate, 1,090 apartment sales totaling 17,459 units changed hands in 2003. That number was only topped by the 21,794 units sold in 1,426 transactions in 1989 and the 21,142 units sold transferred from 1,148 transactions in 2002.
As for condominiums, the number of condominium permits issued in 2003 rose by 57.9 percent, to 2,843 new units at a value topping $402 million. That number is up from the 1,800 permits issued at a value topping $271 million in 2002.
According to George Carlson, a vice president and apartment specialist with Burnham, investors are enamored with low apartment vacancy rates and with the lack of supply on the market, making the apartments a desirable investment.
"Condominiums continue to dominate the multifamily construction scene in direct response to skyrocketing single family home prices and the scarcity of entry level for-sale housing," Carlson says and adds that most of the new apartments being built fall under the luxury category.
Major apartment sales in 2003 included:
·The Promenade Rio Vista, a 970-unit project located in Mission Valley that sold for $203,000,000 or $209,278 per unit;
·Villagio at Rancho Bernardo, a 368-unit community that sold for $65,692,000 or $178,510 per unit;
·Casoleil, a 346-unit apartment community developed by JMI Realty that sold for $58,500,000 or $169,075 per unit;
·Mountain Ranch, a 262-unit apartment complex in the Rancho Bernardo area of San Diego that sold for $44,422,499 or $169,551 per unit;
·Pepperwood Apartments, a 246-unit complex in Vista that sold for $26,200,000 or $106,504 per unit;
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
