BRE Buys 194 Broken Condo Units for $46M

Ed Rosen, executive director with Cushman & Wakefield's San Diego office, says that the sale "shows the increasing demand among institutional investors for well-located, high quality and amenity-rich apartment communities in San Diego County." The deal is the second major multifamily transaction involving a publicly traded REIT so far this year, he adds.

By contrast, Rosen points out, "In 2009, not a single apartment community was acquired by a REIT, but already in the first quarter of 2010 we have seen two such transactions. This illustrates returning confidence in the investment community with respect to multifamily product and the San Diego market in particular."

Rosen, along with John Chu and Alejandro Lombrozo, also of Cushman & Wakefield, negotiated the Monarch at Scripps Ranch transaction for both the seller and the buyer. They also represented both parties involved in the first major sale of the year, the $44.75 million acquisition of the 180-unit Del Mar Ridge community by Equity Residential.

Monarch at Scripps Ranch is located at 10776 Scripps Ranch Blvd. The BRE web site shows that the San Francisco-based REIT has changed the name of the project to Allure at Scripps Ranch.

The sale to BRE Properties involves 12 contemporary three-story walk-up buildings set on 9.13-acres. The unit mix includes 80 one-bedroom, one-bath units; 108 two-bedroom, two-bath units; and 6 three-bedroom, two-bath units. Sizes range from 800 square feet to 1,450 square feet.

The property's common area amenities include a pool and a spa, as well as a recreation center that features a 24-hour cardio/fitness theater, 24-hour business center, living room with fireplace, media center and full-service kitchen.

The 262-unit complex was originally developed as an apartment complex. The La Jolla-based Sickels Group bought it in 2005, financing it with a $76-million loan from Chicago-based Corus Bank, according to a GlobeSt.com report at the time.