San Diego Business Journal

Piece of Local History Is Part of La Jolla Apartment Buy

Real Estate Column By Lou Hirsh Monday, April 22, 2013

A Denver-based investment firm has purchased a La Jolla apartment community located on a site with ties to San Diego’s history.

Aimco Holdings LP recently acquired Prospect 400, a 60-unit apartment building at 400 Prospect St., for $29 million, according to CoStar Group. The seller was the Carolyn M. Holmer Irrevocable Trust, represented by brokerage firm CBRE.

The four-story building was constructed in 1970 on 0.65 acres and renovated in 2009. Long before that, CBRE noted in its own statement, that site was a local landmark and the former summer home of Frederick William Kellogg and his wife Florence Scripps, before it was redeveloped for apartments in 1970.

The property now includes an ocean-view sundeck, heated pool, hydro-therapy spa and a resident lounge with a full kitchen, media niche, billiard table and restrooms. The apartment property was originally designed by Alan Daun and built by Mabie and Mintz Inc.

CBRE Senior Vice President Jim Neil described the property deal as a “once-in-a-generation transaction” because of its ocean-adjacent location and landmark status, noting that there was strong investor interest when the property was placed up for sale.

According to its website, Aimco before its latest acquisition owned a total of 11 apartment properties in San Diego, Escondido and Oceanside. It has had a sizable presence in the local market since at least 1996, when it acquired Walters Management Co. in San Diego.

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Tarsadia Buys Hilton in Mission Valley: Tarsadia Hotels of Newport Beach has purchased the 349-room Hilton San Diego Mission Valley hotel for approximately $44.6 million. The seller was HEI Hotels & Resorts of Connecticut, according to data from CoStar Group.

The 14-story property was built in 1988 on approximately 4 acres at 901 Camino Del Rio S.

The acquisition was financed with a down payment of $5.1 million and a loan of $39.5 million from East West Bank, according to CoStar and public data.

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New York Buyer Acquires Copley Business Center: New York-based HighBrook Investment Management LP has purchased the Copley Business Center office complex in Kearny Mesa for $22.5 million.

The seller of the 102,000-square-foot property was a private tenant-in-common entity sponsored by Thompson National Properties, according to a statement from real estate services firm HFF, which represented the buyer and seller.

The property at 5751-5771 Copley Drive currently serves as the corporate headquarters of Reva Medical Inc. and also houses other tenants. It was 87 percent leased at the time of the transaction.

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