San Diego real estate management and investment firm ConAm Group purchased on Oct. 24 a foundering 221-unit mixed-use project in Oceanside for $30 million, allowing the deal to go forward, according to the brokerage firm on the deal, Hoffman Co.
National homebuilder K. Hovnanian Homes partially developed the 14.4-acre Piazza d’Oro project in Oceanside as for-sale condominiums. ConAm will complete construction and market the units as apartment rentals, according to Hoffman broker Justin Esayian.
“Yes, the real estate market is uncertain right now, but this is a smart time to pick off the best properties at a price we haven’t seen in years,” said Esayian. “The guys at ConAm are local. They know the market and they have a long-term vision for this project. This is a bold play that is going to pay off for them both now and down the road.”
K. Hovnanian was seeking to minimize its land exposure and was motivated to sell because of the fiscal year-end tax break, Esayian said.
Most publicly traded development companies are taking a close look at the tax benefits of selling land now at a loss they can write off against the profits of the past two years, said Tom Dallape, co-principal of the Hoffman Co.
In the past 90 days, he said, Hoffman has closed seven real estate deals in Southern California in excess of $55 million. At least two of the largest ones were motivated by tax write-offs, Esayian said.
, Ned Randolph