SANTA CRUZ, CA- Oceanview & Breakers, a 104-unit apartment complex here, has changed hands for "approximately $20 million," a source familiar with the transaction tells GlobeSt.com. The new owner is a partnership of San Rafael-based Seagate Properties Inc. and Rreef America REIT II.

The 75,000-sf, two-building development is sits on 2.25 acres next to Lighthouse Beach State Park. The seller was a private individual. Occupancy was not immediately available. Arthur Griffith and Kenton Wolfers of NAI BT Commercial Real Estate Services represented Seagate.

Seagate principal Mark Polite says the property is well located asset that has been underperforming. "This is…an irreplaceable asset which has been suffering from dysfunctional management and an inadequate capital structure," he says. "We believe it has tremendous intrinsic value due to its exceptional coastal location."

This is Seagate Properties second acquisition in Santa Cruz. In mid-2005 Seagate purchased with another institutional partner the UCSC Inn, a 172-room hotel located Downtown. The UCSC Inn is master-leased to the University of California at Santa Cruz for student housing.