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LA MESA, CA-With condo conversions reaching a fever pitch in the San Diego area it would take a major redevelopment to turn heads locally. The conversion of the 384-unit Villages of La Mesa is just such a project to pique interest.The property recently changed hands for $84.5 million, with San Diego-based developer VLM Associates LP picking up the site from ITEC Properties, a California general partnership with Terral Investment Co. and Investors Leasing Corp. as the general partners.The new owners will immediately begin work on the conversion. The group picked up financing from NorthMarq Capital Inc., who arranged $104.8 million that includes rehabbing and repositioning the existing units.Ory Schwartz, vice president in NorthMarq's Newport Beach office arranged the financing of the 30-month floating rate loan, totaling 80% of the project cost. Schwartz tells Globest.com that he arranged financing "through a large foreign bank that provided the debt and arranged a joint venture equity partner who put up 95% of the equity."The apartment property sits on 20.88 acres and counts 319,640-sf. The units range from one-bedroom, one-bathroom in 598 sf to two-bedroom, two-bathroom in 988 sf. Sale prices were not available.The property was constructed in two phases in 1988 and 1999, and included a recorded condominium map, which is a rarity in the local area, according to Schwartz. "The city of La Mesa is one of the most restrictive ordinances in San Diego County," says Schwartz. "So there is no real competition for the project."In the deal, Tom Olson of Coldwell Banker Commercial Real Estate represented the seller. The buyer was represented in-house. Stewart Title Company provided title and escrow services.