Oceanside Apartment Complex Trades for Record $110M

The Capella at Rancho del Oro has traded hands for $110 million, making it the highest priced apartment transaction on record in Oceanside, a city in San Diego County. Property West Residential acquired the property from FPA Multifamily.

Located near Downtown Oceanside, Capella at Rancho del Oro has 284 units and it was constructed in 20021. It is conveniently located near several major job centers, including Rancho Del Oro Technology Park, Palomar Airport District, Ocean Ranch Corporate Center and Camp Pendleton, which is the largest employer in the area. According to Christopher J. Zorbas, IPA executive managing director investments, this is a unique investment opportunity in the market, which has mostly 60s, 70s and 80s garden properties.

Zorbas, Tyler Martin and Alexander Garcia, Jr. represented the seller and procured the buyer in the deal. This is the second apartment transaction this month in Oceanside. Earlier in the month, the Dylan, a 208-unit apartment complex on Los Arbolitos Blvd., traded for $74.1 million. Like the Capella at Rancho del Oro, the property is located near Downtown Oceanside and the Oceanside Pier, as well as major employment hubs and universities. Half of the interior units were renovated at the time of the sale, providing some upside for the buyer through completion of the upgrades. The property has two swimming pools, two spas, a gym and a business center for residents.

The greater San Diego market has been attracting investor attention. In May, Blackstone acquired a 66-property apartment portfolio from Conrad Prebys Foundation for $1 billion. It is the largest transaction in San Diego history, and will make the firm one of the largest apartment owners in San Diego. Blackstone is purchasing the assets in partnership with TruAmerica Multifamily. The deal totals 5,800 apartment units, bringing Blackstone’s total market share to 6,700 units with a value of more than $5 billion.