Search
 

Villages of La Mesa Brings Nearly $85M

LA MESA, CA-The 384-unit luxury apartment complex will undergo a condo conversion. Although the county is facing an abundance of conversions, the local market is very tight.

By Daniel D. Williams | Updated on October 19, 2005

(To read more on the multifamily market, click here.)

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 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.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.