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LEMON GROVE, CA-Aimco Capital has sold the Terrace Gardens senior complex here to a private investor who snapped up the 150-unit multifamily asset within 48 hours of it being listed.

Just two weeks after the property was put on the market, a non-contingent transaction was negotiated between the Southland-based investor and Aimco, with cash delivered to the seller. The transaction closed 60 days later with a 6.5% cap rate and the assumption of a Fannie Mae loan, according to John Garner and Robert Sheppard of Marcus & Millichap Real Estate Investment Brokerage Co. The Marcus & Millichap team secured and acted on behalf of the buyer after being awarded the apartment listing by Aimco Capital, which the duo also represented in the sales transaction. The seller, which has acquired the asset as part of a 1031 exchange, paid $71,000 per unit or nearly $10.7 million for the property.

Located on a 3.37-acre parcel at 3281 College Place, the Terrace Gardens asset was constructed in 1989. The senior complex, which encompasses a total of 78,842 sf, is comprised entirely of one-bedroom units. Monthly rental rates currently average $644 per unit, due to income restrictions enforced under the Section 42 Tax Credit program. The regulations, which will remain in place until December 31, 2004 require that 120 of the complex’s 150 units be leased to tenants earning less than 60% of the area median income.

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