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SAN DIEGO-After fielding numerous offers from the likes of both national and regional investors, including REITs, insurance companies and opportunity funds, UCV LP has sold the University City Village Apartments asset to a private buyer for $58.4 million, with the deal closing at a mid-5% cap rate.

The 542-unit seniors apartment complex generated “tremendous interest,” according to David Sonnenblick, principal of Sonnenblick-Eichner Co., the Los Angeles-based real estate investment banking firm that arranged the sale. Sonnenblick tells GlobeSt.com that the property was competitively bid because of its excellent location, stable history of occupancy and redevelopment and expansion entitlements.

The buyer, an undisclosed multifamily owner and developer based in San Diego, was not only willing to put up hard, non-refundable money, but was also ready to take on the entitlement risk, Sonnenblick says. The asset has been purchased “as is, where is,” he adds. The entitlements will allow for the property to be redeveloped and expanded into a 1,109-unit complex with an 80-unit assisted living facility.

Located at 4633 Governor Dr. within the Golden Triangle area of San Diego, the complex currently consists of 89 one-story buildings located on a 75-acre parcel. Its streets are publicly owned and maintained, with San Diego Mass Transit stops located throughout the property. Amenities include recreation facilities, a swimming pool and a public golf course. According to Sonnenblick, the property’s occupancy level is always 97% or higher and there is always a waiting list to get in.

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