Triumph Properties Group Buys Carlsbad Apartment
CARLSBAD, CA-GlobeSt.com has exclusively learned that Triumph Properties Group has acquired Villa Real Apartments, a 163-unit apartment home community in Carlsbad from Receiver Douglas Wilson and Co. for $20.1 million.
The transaction marks the entry into the San Diego County multifamily market for Triumph, a Beverly Hills-based family-owned and operated commercial real estate investment, management and development company. With Villa Real, Triumph has acquired $50-million worth of multifamily assets in 2012.
According to the firm, it is looking to close on additional multifamily acquisitions by year end. Triumph owns more than 1,350 units throughout Southern California. John Chu, Ed Rosen and Alejandro Lombrozo in the San Diego office of Cushman & Wakefield represented both the buyer and seller in the transaction.
Built in 1979, the Villa Real Apartments are located at 2701 Avenida de Anita, 2.5 miles from the beach and within walking distance of shopping, restaurants and recreational facilities. The 163 one- and two-bedroom apartments are spread out over 10.5 acres in 14 two-story buildings. Villa Real also includes a clubhouse with a fully equipped gym and racquetball court, heated pool and spa, and lighted tennis courts.
“Apartment fundamentals in the North County are extremely strong,” says Noah Hochman, VP of acquisitions and dispositions for the firm. “Adjacent institutionally owned projects have been experiencing excellent rental growth as a result of their own capital improvement programs.
Triumph will immediately begin a significant $3.5 million capital improvement program to reposition the community. In addition to interior and exterior improvements, the company plans to take advantage of the low density nature of the asset and create an urban park environment that highlights its open space and superior amenities, according to a statement.
“A project like Villa Real, with its more than 65% percent open space and common area would be cost prohibitive to build today. We therefore saw an opportunity to acquire a well located apartment community at a significant discount to replacement cost, where we could add value through strategic improvements and proper management to create a unique product for Carlsbad and the North County,” Hochman adds.
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