Class-A Multifamily Fetches ‘North of $80M’

(Mark Your Calendars: RealShare Apartments East, February 15^th in Washington, DC).

SAN DIEGO-A client of Invesco Real Estate has purchased Monarch at Shadowridge in the San Diego submarket of Vista, CA.  The class-A multifamily property was sold by a partnership of Archon Group and Monarch Group.

Jones Lang LaSalle’s San Diego multifamily specialists Darcy Miramontes and Diane Miramontes, both EVPs, and vice president Kip Malo, represented the buyer. Although JLL declined to say a purchase price, GlobeSt.com learns from an unidentified source that it traded at north of $80 million. 

Monarch at Shadowridge is located at 1850 Thibodo Rd. in Vista. The 314-unit multifamily property, was completed in December 2005. The property features controlled access, a pool/spa, direct access garages in the two- and three-bedroom units, detached garages for select one-bedroom units, as well as full-size washer and dryers in all units. 

The property is currently 94% occupied.

According to Miramontes, “Transaction volume in San Diego County has risen steadily over the course of 2011… the sale of Monarch at Shadowridge shows just how far the market has bounced back.” She adds that “the sellers fielded dozens of offers from both institutional and local investors.”

Miramontes says that Invesco’s client “made an extremely strategic purchase,” adding that they will be able to “immediately capitalize on the strong fundamentals and steady rent growth in the San Diego market.

As sister publication Real Estate Forum recently published, a group of industries including biomed and biotech has helped pull the San Diego market into recovery, helped along by construction and healthcare. On the multifamily side, the article pointed out that like many other markets, multifamily is one of the stars for San Diego and will grow slowly over the next five years. And as supply grows tights, rents will go up, said sources. JLL’s Miramontes told Real Estate Forum in that December article that “occupancy is currently 96% or better across type, age and submarket and is expected to hold at that level through 2012.”

Cassidy Turley BRE Commercial also notes that San Diego continues to be one of the strongest multifamily investment markets in the country. In the firm’s recent forecast, it points out that Ample sources of low-interest financing combined with a scarce amount of supply have made multifamily real estate the top performer and projects that the product type will continue to perform well in 2012. “The San Diego apartment sector has and is expected to continue to compete aggressively on a national level due to the desirability of the region and strong market fundamentals,” says the forecast.