Partnership Pays $77M for Fractured Condo Project

SAN DIEGO-Missions at Rio Vista LP, c/o Property Management & Development Corp. has sold Missions at Rio Vista for $77 million. The buyer was the Missions I LP and the Missions II LP partnerships controlled by R&V Management Corp.

R&V is a local real estate firm that controls and operates approximately 7000 residential units in San Diego County including this acquisition and more than 400 units currently under construction. Missions at Rio Vista is a fractured condominium project in the Mission Valley neighborhood of San Diego, located at 2242 Gill Village Way.

The seller was represented by Ed Rosen, John Chu and Alejandro Lombrozo of Cushman & Wakefield. The current transaction involved a sale of 316 out of the 464 total units at the property. The condominiums were sold in bulk to the apartment owner/operator.

Built in 1999, the 30-building property sits on a 15.75 acre parcel. The 316 rental units consist of 91-one bedroom, one bath units, 202-two bedroom, two bath units, and 23-three bedroom, two bath units, with an average of 1,033 square feet per unit. The homes have high ceilings, upgraded carpet and flooring, intrusion alarm systems, oversized Roman bathtubs, in-unit washers and dryers, and select units offer garages.

The property was last sold in January of 2006 for $135.5 million, when a partnership headed by Del Mar Pacific Group purchased the complete 464 unit project with the intention of converting and selling each of the units individually as condominium homes, according to a prepared statement. C&W’s Rosen and Chu also represented the seller at that time, Blackrock Realty Advisors.

As the for-sale condo market slowed post-acquisition, Del Mar Pacific was unable to move sufficient units to maintain their sales effort, according to C&W. A total of 148 units were sold individually during the condominium sales process.

In 2007, Property Management & Development Corp., a mezzanine lender on the deal at the time, took full control of the ownership and operation of the community. Property Management & Development has since operated the remaining 316 units as a rental community, electing to list them for sale in bulk with Cushman & Wakefield earlier this year, according to a statement.