Family Trust Buys $13M Complex

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LA MESA-The Wagner Family Trust has acquired the Villa Sangria apartment building at 8633 La Mesa Blvd. for $13.4 million, according to CB Richard Ellis. Eric Comer and Jim Neil of the San Diego office of CB Richard Ellis represented the seller, Villa Sangria Co. The Wagner Family Trust represented itself in a transaction that underscores the broad spectrum of buyers, ranging from individuals to institutions that continue to pursue properties in the San Diego multifamily market. The two-story Villa Sangria complex was built in 1972 and consists of 100 units. Made of wood framing and stucco, the property features amenities including a clubhouse, a heated pool, picnic areas, a private sauna and fitness facilities. The closing of the Villa Sangria deal comes as the San Diego apartment market continues to benefit from the same factors that have been driving multifamily sales throughout Southern California. These economic drivers include population growth, new jobs, a lack of land on which to develop new projects and the high cost of single-family homes, which is pushing toward a $600,000 median price in San Diego. According to the latest information from Novato-based RealFacts, which tracks institutional grade apartment complexes of 100 units or more, San Diego and other Southern California multifamily markets stood out in the research firm’s latest survey by posting modest rent gains and higher occupancy levels than most metropolitan statistical areas in the country. San Diego has also been one of the hotbeds of condominium conversion deals, which have driven up prices, but some market reports have suggested lately that the condominium conversion market may be slowing. The slowing is not a result of any lack of interest on the part of condominium conversion specialists. Rather, the reports suggest that a substantial percentage of the apartment complexes that are suitable for conversion have already been converted or are in the process of being converted.