Number of Apartment Complex Sales Climbs
American Mortgage Expands Loan Capacity By $150M
SAN DIEGO REAL ESTATE
by Mandy Jackson, Staff Writer
The number of apartment property sales in the county in 2001 was the highest in 12 years, according to a recent report by San Diego-based Burnham Real Estate Services.
Last year there were 1,054 apartment complex sales, compared to 992 transactions in 2000 , a 6 percent difference. The 2001 total is the highest since 1989 when 1,426 properties were sold.
However, while the number of properties was high in 2001, the number of apartment units declined 23.5 percent, from 19,890 units in 2000 to 15,213 last year.
George Carlson, a vice president and apartment specialist with Burnham attributed the lower number of units to fewer sales of properties with 100 or more units. In 2001, there were only 12 major apartment sales with 2,654 units, compared to 42 properties with 9,194 units in the previous year, he said in the report.
Top apartment investment markets in 2001 were El Cajon, with 82 sales involving 1,655 units; Golden Hill/Southeast San Diego with 121 sales of 1,161 units; and North Park, with 170 sales of 980 units.
Burnham reports that investment in Class A apartment properties slowed because of many new projects with high-end rents being completed in 2001, which competed with each other through rents. However, Carlson predicts a recovery in that type of product.
“Given that there were six major sales of properties with a combined total of 1,031 units during the first 10 weeks of this year alone, we believe the lull is nearing and are bullish in our outlook for 2002,” he said in the report.
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Funding Expanded: American Mortgage Network has secured a $150 million line of credit from UBS Warburg Real Estate Securities Inc. The funding facility expands the mortgage bank’s capacity for providing home loans.
Also, U.S. Bank has added $35 million to the $75 million funding facility initiated by JPMorgan Chase Bank last year. The UBS and U.S. Bank contributions bring AmNet’s revolving secured line of credit to $260 million.
AmNet is the mortgage banking subsidiary of the Del Mar-based mortgage real estate investment trust American Residential Investment Trust.
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Design Completed: Smith Consulting Architects of San Diego has completed the architectural and interior design for a 99,370-square-foot facility in the Parkway Business Center in Poway for ADCS Inc., a high-tech company specializing in data capture and document conversion.
Construction on the $11 million, two-story office building began in March and is expected to last until August. The project includes energy-saving equipment, such as micro-turbines that will help save electricity during peak hours and supply a source for hot water.
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Sold Out: Del Mar-based Davidson Communities recently sold the last of its 99 homes in Shelbourne in La Costa Valley, a master-planned community in Carlsbad. The last of the two-story homes were priced from $689,900 to $709,900.
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Big Sale: Oceanside Prescott LLC purchased the three-building, 266,339-square-foot Prescott Industrial Park on Ord Way in Oceanside for $13 million from Ocean Federal Bank.
Jim Spain and Josh McFayden of Colliers International represented the seller. Tucker Hohenstein of Burnham Real Estate Services represented the buyer.
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Funding In Place: La Jolla-based C.W. Clark Inc. has the funding in place for its nearly $20 million Gateway Center, a 120,000-square-foot shopping center and office building project at Tulip Street and West Valley Parkway in downtown Escondido.
MM & S; Investments Corp. will provide $15.375 million and Clark will provide $4.4 million. The property is 64 percent leased.
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Work Begins: Construction recently began on the new $53 million Mission Hills High School for the San Marcos Unified School District designed by NTD Architects’ San Diego office. The school, serving 2,400 students, will open in the summer of 2004.
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Design Standards: Alpine and Ramona have selected planning, architectural and landscape design firm Robbins Jorgensen Christopher of San Diego to develop design standards that help the communities maintain and enhance their local character while meeting current and future commercial and residential development needs.
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Final Notes: National City-based McMillin Realty’s leading agent for the past 15 years, Patti McKelvey, surpassed her previous record by selling 300 homes worth $95.3 million 2001, a 26 percent increase from 2000. M.W. Steele Group has moved its headquarters and 16-member staff from La Jolla to 6,500 square feet in Downtown San Diego at 325 15th St. The company leased the single-story warehouse building from Sinclair Properties. Rhonda Gallery of HomeLife Village Realtors has earned the Graduate, Realtor Institute (GRI) designation from the California Association of Realtors. Roel Construction Co. Inc., headquartered in San Diego has opened an office in Irvine.
Send residential and commercial real estate news to Jackson via fax at (858) 571-3628 or via e-mail at
mjackson@sdbj.com.
Call her at (858) 277-6359, Ext. 114.
