Encinitas Heights is located close to Encinitas Ranch Town Center, Downtown Encinitas and Encinitas Ranch Golf Course. The property features spacious one-, two- and three-bedroom apartments with in-home washers and dryers, central air conditioning and gourmet kitchens. Community amenities include a 24-hour fitness center, a solar heated pool and a rentable clubhouse.

As we reported in December 2016, ABI Multifamily partner Patrick Doyle told us that with 5%-plus annual multifamily rent increases in most San Diego submarkets over the past five to seven years and average rents in San Diego County approaching $1,800 per month, new construction made sense at last. The firm had released a report showing increased San Diego multifamily construction deliveries in Q3 2016. Fellow partner and director of research Thomas Brophy added that many renters prefer to live alone and would be satisfied with a studio, or what is becoming known as a micro-unit. “Given the ideal climate we have here in San Diego, a micro apartment with usable common area and outdoor spaces would fill the void and be a nice alternative to sharing a larger space with a roommate. Some locations that I think would greatly benefit from this type of product would be Little Italy, Midtown and the North County coastal downtown neighborhoods of Encinitas, Carlsbad and Oceanside.”

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ENCINITAS, CA—Property West Residential has purchased Encinitas Heights, a garden-style multifamily property here, from an undisclosed seller for $53 million. The property, a 120-unit, institutional-quality apartment complex located at 1100 Garden View Rd., affords convenient access to the nearby beach community Cardiff-by-the-Sea, further demonstrating the appeal of beach-proximate apartment properties for investors.

Berkadia managing directors Ed Rosen and John Chu and directors Kyle Pinkalla and Erin Dammen represented the seller in the transaction. Rosen tells GlobeSt.com, “The fewer the sales in a market, the more stable and attractive an asset becomes to an investor. And virtually nothing would trade in this market unless there were unusual circumstances. Encinitas Heights is the newest multifamily development in Encinitas in 20 years, and the next newest development is 20 years older than that—not because of demand, but zoning and supply. A huge drought of apartments in a very expensive residential area creates a huge opportunity to raise rents.”

According to Rosen, Encinitas Heights was built in 2002, making it the newest multifamily project within the highly desirable residences of Encinitas, CA. This local investor has paid a record-setting highest-price per unit in Encinitas, prior to even factoring in the community's affordable units.

Rosen adds that while few multifamily sales have occurred over the past couple of years in this submarket of San Diego, the market remains strong, since “most owners are long-term holders who are trying to build a bigger presence within this market.”

Encinitas Heights is located close to Encinitas Ranch Town Center, Downtown Encinitas and Encinitas Ranch Golf Course. The property features spacious one-, two- and three-bedroom apartments with in-home washers and dryers, central air conditioning and gourmet kitchens. Community amenities include a 24-hour fitness center, a solar heated pool and a rentable clubhouse.

As we reported in December 2016, ABI Multifamily partner Patrick Doyle told us that with 5%-plus annual multifamily rent increases in most San Diego submarkets over the past five to seven years and average rents in San Diego County approaching $1,800 per month, new construction made sense at last. The firm had released a report showing increased San Diego multifamily construction deliveries in Q3 2016. Fellow partner and director of research Thomas Brophy added that many renters prefer to live alone and would be satisfied with a studio, or what is becoming known as a micro-unit. “Given the ideal climate we have here in San Diego, a micro apartment with usable common area and outdoor spaces would fill the void and be a nice alternative to sharing a larger space with a roommate. Some locations that I think would greatly benefit from this type of product would be Little Italy, Midtown and the North County coastal downtown neighborhoods of Encinitas, Carlsbad and Oceanside.”