San Diego Suburban Asset Sells for $66M

IDEAL Capital Group and Aegon Real Assets U.S. bought a community in Oceanside, one of California’s last affordable beach cities, in a deal arranged by CBRE.
Sunterra Apartments. Image courtesy of CBRE

Sunterra Apartments, a 240-unit rental community located in an undersupplied market between Los Angeles and San Diego, has changed hands in a $66.3 million transaction brokered by CBRE. The Oceanside, Calif., property sold to a joint venture of IDEAL Capital Group and Aegon Real Assets U.S., a division of Netherlands-based life insurance, pension and asset management company Aegon NV.

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CBRE’s Dean Zander, Stewart Weston, John Montakab and Kevin Mulhern represented the seller, a private investment group. The deal was closed just days after CBRE brokered the $56 million sale of a 297-unit multifamily property in Phoenix.

Sunterra Apartments is situated at 3851 Sherbourne Dr., and features 240 two-bedroom apartments. Prominent on the property‘s list of common-area amenities is an outdoor lounge with grills and fireplace. Apartments feature newly remodeled interiors, stainless steel appliances, modern white cabinets, balconies or patios and hardwood flooring.

High Barrier to Entry

Situated roughly 40 miles north of San Diego, Oceanside is a robust submarket that has experienced a comparative lack of new development. It is also one of California’s last affordable beach cities, yet is a high-barrier-to-entry submarket. The combination of these factors resulted in a competitive bidding process. All prospective buyers—which included institutions, sponsored groups, family offices and individuals—showed interest in undertaking property improvements to meet renter demands.

Sunterra Apartments is located a mile from the Oceanside shopping corridor of Vista Way. Its central location places it within commuting distance of the area’s leading employers such as Marine Corps Base Camp Pendleton, Genentech Inc., the University of California San Diego, Reyes Coca-Cola Bottling, Legoland California Theme Park and the acute care public hospital Tri-City Medical Center.

Area outdoor recreation opportunities include Buena Vista Audubon Nature Center, Guajome County Park and Carlsbad State Beach.

IDEAL Capital Group plans to make Sunterra Apartments into a home for value-conscious residents of north San Diego County who prize amenity-rich properties.