Rising Multifamily Rents Lure More Investors
As San Diego rents continued their growth through 2014, and are projected to follow a similar upward trend, investors are looking to establish a presence in the market, or cash in on their existing asset while values rise.
By Alex Girda, Associate Editor
As San Diego multifamily rents continue on their upward trajectory, investors are looking to cash in on their holdings or establish a local foothold. At the end of the first quarter, the average monthly rent in San Diego stood at $1,596 per month, according to Marcus & Millichap. Recently, multi-family deals totaling more than $50 million in value were completed in the market.
BluWater Crossing in Carlsbad was acquired by an affiliate of Pacifica Real Estate Services Inc., a Rancho Santa Fe-based entity. The 66-unit asset commanded $39.7 million in a deal arranged by James Neil, J. Kevin Mulhern, Dixie Hall, Eric Comer and Rachel Parsons of CBRE. The seller was the Macquarie Group of Seattle. BluWater Crossing was completed in 2009 on an 8-acre site at 6800 Embarcadero Lane. Vacancy was about 3 percent at the time of the transaction, The San Diego Business Journal reported.
Also under new ownership is the Marquis at Hillcrest, recently acquired by Littletown Realty LLC from Virtu Investments LLC. in a $13.7 million transaction. Tyler Sinks and Kyle Pinkalla of Cushman & Wakefield Inc.’s multi-family advisory group arranged the sale. Located at 1751 University Ave., the 58-unit property was built nearly a century ago, the property and underwent extensive renovations in 2008. Residents have access to an amenity package that includes a fitness and yoga center, courtyard, on-site laundry and a business center.
Chart courtesy of Marcus & Millichap
