San Diego Business Journal

Big Moves Made in Multifamily Properties

REAL ESTATE: Chula Vista Complex Sells for $90 Million By Lou Hirsh Monday, March 11, 2013
Locally based R&V Management Corp. recently purchased the 336-unit Missions at Sunbow apartment community in Chula Vista for $90 million from Equity Residential.

Locally based R&V Management Corp. recently purchased the 336-unit Missions at Sunbow apartment community in Chula Vista for $90 million from Equity Residential.

When locally based R&V Management Corp. recently purchased the 336-unit Missions at Sunbow in Chula Vista for $90 million from Equity Residential, it marked the largest single recorded apartment transaction so far this year in San Diego County.

It was also among at least 13 large local apartment properties to change hands in a span of a few days, as major regional and national investors shifted their portfolios and bolstered their holdings in the San Diego region.

Some of the changes stem from the move by Lehman Brothers Holdings Inc. to liquidate the entire apartment portfolio of its Archstone Enterprise LP, selling the bulk — 136 U.S. communities totaling more than 40,000 units — to Equity Residential and AvalonBay Communities Inc., in deals totaling $15.5 billion.

In San Diego County, the deal switched at least four former Archstone communities, totaling 636 apartments, to new ownership. Chicago-based Equity Residential now owns the 120-unit Archstone Encinitas and the 168-unit Archstone Del Mar Heights.

Virginia-based AvalonBay is the new owner of the 168-unit Archstone La Mesa, and the 180-unit Archstone La Jolla Colony in University Towne Center. Both Equity Residential and AvalonBay had significant holdings in San Diego County prior to those deals.

Irvine’s Bigger Footprint

Also as a result of the Archstone sell-off, Newport Beach-based Irvine Co. — already the local region’s largest office property landlord — has significantly bolstered its San Diego County apartment holdings.

Irvine Co. has acquired full stakes in eight local apartment buildings, totaling 3,000 former Archstone apartments in San Diego, Escondido and Carlsbad, where Irvine Co. previously held partial ownership. The company did not disclose transaction prices, but Irvine Co. spokesman Michael Lyster said Irvine had owned a 90 percent stake in the local properties since 2007.

Irvine Co. now fully owns Harborview in downtown San Diego, Solazzo in La Jolla, Del Rio in Mission Valley, Torrey Hills in Carmel Valley, Westwood in University Towne Center, Emerald Glen in Escondido, and Pacific View and Seascape in Carlsbad.

Irvine officials said the company’s apartment communities division has hired about 75 former Archstone property management and maintenance employees to work at the San Diego County apartments, and is developing a reinvestment plan to include future renovations.

To finance its Archstone acquisitions, Equity Residential sold off some of its other existing U.S. holdings, including the Chula Vista property purchased by R&V Management.

An R&V spokesman referred questions to the company’s investment executives, who could not be reached. The privately held company, with headquarters in Mission Valley, has been in business since 1979 but generally keeps a low media profile, according to the spokesman.

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