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Friday, Sep 22, 2023

Real Estate—Residential vacancy rates down to 1.4 percent

Del Mar Real Estate Agents Honored for

Sales Performance

Residential landlords in the county are benefiting from sharply higher rents and brisk apartment sales, two real estate brokerages said.

Plummeting vacancy rates across the county fueled the higher rents, said Hendricks & Partners, a national real estate company with an office in San Diego. The overall vacancy rate dipped to 1.4 percent in the third quarter of 2000, down from 2.9 percent 12 months earlier.

Only 260 new apartment units were delivered to the market in the third quarter, about the same as the 240 units released in third quarter 1999.

Permits for new units plunged in the third quarter to 623 units, down from 2,038 units in the third quarter of 1999.

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The good rental environment has led to a record sales volume, San Diego-based Burnham Real Estate Services said in a report released late last month. About 276 transactions involving 5,686 units took place in the third quarter, the company said.

“This represents a 33 percent increase over the same period last year when 207 projects involving 4,283 units were sold,” said George Carlson, a vice president with the company who specializes in multifamily properties.

“It’s also the highest number of projects sold since the second quarter of 1990 when 283 projects changed hands, and the highest number of units sold since the first quarter of 1989 when 6,781 units were transferred.”

The east San Diego neighborhood in the 92105 ZIP code led in San Diego County sales for the first time. During the third quarter, 50 complexes made up of 606 units changed hands, accounting for nearly half of the area’s 104 year-to-date transactions, he said. The average sales price per unit was $39,927, up 15 percent from $34,675 as of Dec. 31, 1999.

“East San Diego’s lower property values and sales prices are attracting the attention of some investors who may feel other markets are close to topping out,” Carlson said. “Many of the properties in this area are in need of improvement and investors who buy now and implement market-appropriate rehabs stand to realize appreciation while improving the neighborhood at the same time.”

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Tops In Sales: Three real estate agents with the Willis Allen Co.’s Del Mar office were recognized for their sales performance.

Judith Bradley, manager of the office, praised Shawn Hethcock and the team of Peggy Chodorow and son Eric Chodorow late last month for their performance.

This was the most successful year so far for the Chodorows, she said. The pair closed escrows on a total of $82 million in real estate in 2000.

Liquidation Sale: Burnham Pacific Properties Inc. of San Diego sold two shopping centers last month as part of its going-out-of-business sale.

It closed escrow on the San Diego Factory Outlet Center at 4498 Camino de La Plaza in San Ysidro and Meridian Village Shopping Center in Bellingham, Wash., said Dan Platt, CFO for the real estate investment trust. The company’s board of directors voted last summer to liquidate the company’s assets and go out of business.

The two centers totaling approximately 465,000 square feet were bought for $48.7 million by Retail Value Investment Partners, a partnership made up of Prudential Real Estate Investors, Developers Diversified Realty and Coventry Real Estate Partners, Platt said.

Burnham will realize a gain of about $3.5 million on the sales, and proceeds will be used to reduce outstanding corporate debt and add to cash reserves.

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Bits And Pieces: Motivational Systems of San Diego has been honored with four silver awards from the Sales and Marketing Council of the National Association of Home Builders. Sandra J. Perlatti, an executive with National City-based Corky McMillin Cos., was named to the Building Industry Association of San Diego County’s Hall of Fame. Cliff Krueger of Krueger Realty was named Escondido Realtor of Excellence by the North San Diego County Association of Realtors. A new Web site, (www.houserebate.com), is up and running, allowing home computer users to access the county Multiple Listing Service.

Send real estate and construction news to Grupe at agrupe@sdbj.com.


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