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Wednesday, Sep 28, 2022

Apartment Market Slows After Two-Year Run With Record Prices, Sales

Sales of San Diego County’s apartments continue to slow, reflecting the difference in the expectations of sellers and requirements of buyers, according to a recent report by Burnham Real Estate.

The slowdown follows two years of record prices and sales that were driven by condo conversions.

“Pricing for San Diego apartment properties became distorted as condominium converters paid unprecedented amounts in anticipation of profits from the sale of converted units,” said George Carlson, vice president and apartment specialist with Burnham Real Estate. “The drop in sales for seven consecutive quarters shows a correction as investors continue to price the units as conventional apartments.”

Carlson advised patience. “Historically, market corrections are followed by significant decreases in selling prices, but not immediately,” he said. “It’s too soon for quarterly averages to reflect a major drop in pricing, but we can expect to see this in the near future.”

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Some Tidbits:Year to date, apartment transactions decreased 34.8 percent, while units sold dipped by more than 26 percent.

There were five major deals in the third quarter, involving 100 units or more: Villa Dorado in Mission Valley, 668 units, sold for $182.5 million; College Manor in the College Area, 179 units, $37.5 million; Oakwood Apartments in Mission Valley, 170 units, $32.8 million; Colonnade at Fletcher Hills in El Cajon, 138 units, $19.5 million; and Mesa Garden Apartments in Vista, 124 units, $16 million.

Leading San Diego County in third-quarter transactions was Normal Heights/Kensington/University Heights with 20 sales of 188 units; Golden Hill/Southeast San Diego, 19 sales of 104 units; followed by Inland North, 16 sales of 250 units; and North Park, 14 sales of 72 units.

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Going Up:

The walls have been erected for a new $12 million, 60,000-square-foot office/research and development building to be occupied by ViaSat Inc., within Northpointe Technology Center in Carlsbad.

Designed by San Diego’s Smith Consulting Architects, RREEF is the developer of the two-story, tilt-up concrete building.

The project is part of a five-building master plan, also designed by Smith Consulting for ViaSat, and scheduled for completion in March 2007.

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Sunny Side Up:

La Mesa’s Pacific Homes International has released a new luxury town home community for sale in the Golden Hill area of San Diego.

The homes feature rooftop solar panels from Clean Power Systems of San Diego. The systems are expected to save about $360 a year in electricity for each home.

The town homes are priced from the high-$500,000s.

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Onward And Upward:

Downtown San Diego residents and business owners on Nov. 14-15 elected eight new members and reinstated three existing ones to the 28-seat Centre City Advisory Committee, downtown’s community planning group.

Representing Little Italy are Ken Cluskey, residential tenant; Laura Garrett, residential owner/occupant; and Lloyd Russell, business owner (re-elected). In East Village, are Marvin Maldonado, residential tenant; Bill Sauls, residential owner/occupant; and David Hazan, business owner. In the Core/Columbia district, David M. Maiolo and Mark E. Hoekstra, business owners, were elected; and John W. Cunningham, residential tenant, re-elected.

For community organizations, those elected are Joyce Summer, civic seat, Downtown Residents Group (re-elected), and William A. Shaw, cultural seat, San Diego Repertory Theater.

CCAC is the state-mandated planning group for downtown San Diego, advising the Centre City Development Corp., the City Council, the city’s Redevelopment Agency and Planning Commission.

The 28 members are elected for two-year terms.

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On Board:

Sue Olivier is the incoming president of the board for the Pacific Southwest Association of Realtors, which represents San Diego’s South Bay area. Other PSAR officers for 2007 are Jeff Bettger, president-elect; Marina Romeri, vice president; Pat Russiano, secretary; and Camille Bruno, treasurer.

Incoming board members are Chris Carroll, Deana Hoffman, Victor Ibarra, Gustavo Lanatta, Manuel Lopez, Armida Martin Del Campo, Debra Martin-Jennings, Benjamin Richardson, Gilesa Sallee, Karen Vargas and Richard Wyllie.

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