Apartment Market Booms with Deals

SAN DIEGO-Multifamily investments remain strong in the metropolitan area with a flurry of recent deals, according to a report released by locally based Hendricks & Partners. Although much of the activity in recent months has dealt with condo conversions, there’s been an uptick in straight apartment sales as well. Among those taking advantage of the strong multifamily market are private investors looking for safe, steady investments.According to one multifamily analyst, the continued success of apartment investments is not unexpected, with the record low housing affordability index being one of the driving factors. “Multifamily housing is the only affordable housing choice for many households,” says John Burns of Irvine-based John Burns Real Estate Consulting, Inc. “Condominiums are expected to make up an increasingly higher percentage of new home sales.”Burns says that the “multifamily housing industry needs to prepare for a new tide of customers seeking housing specifically targeted to their lifestyles.” Among those are young adults, mobile adults and aging adults. With that in mind, investors are eyeing the apartment market as a strong investment and San Diego, in particular, has experienced strong sales for small properties of late.Diamond Street, a 20-unit apartment property located at 2020 Diamond St. here, recently sold for $4.6 million. In the deal, Del Mar Heritage LLC acquired the property from Charles Rimler 1984-I Trust of San Diego. Chad Bramwell and Steve Huffman of the San Diego office of Hendricks & Partners brokered the deal. In a second deal, the Pacifica changed hands for $4.3 million. Located at 2874 B St. in the city, the Pacifica is a 32-unit apartment complex. David and Mony Overturf of La Jolla sold the property to Michel and Palmyre Louvain of Chicago. Bramwell and Jules Arthur also of the San Diego office of Hendricks & Partners brokered the deal. Andrew Gilligan of Washington Mutual handled financing.A third deal will result in a condo conversion. In this transaction, 938 N. Fig St., a 14-unit apartment property in Escondido, sold for $3.2 million. Ching Family Trust of Brawley, CA sold the property to 938 Fig Street LLC of Chicago. The LLC will begin immediately to convert and sell the units as individual condos, according to Steve Huffman of the San Diego office of Hendricks & Partners, who brokered the deal.