Photo courtesy of Interstate Equities Corp.

Photo courtesy of Interstate Equities Corp.

Institutional fund manager Interstate Equities Corp. (IEC) of Los Altos announced it has acquired a 133-unit La Mesa apartment community for $33.95 million, marking its first purchase in the San Diego market.

The seller of the property, at 7400 Parkway Drive, was Pacific Urban Residential of Los Angeles, which acquired it for $20 million in 2014, according to CoStar Group and public data.

In a company statement, IEC officials said they plan to complete interior renovations of the property, currently known as Verse La Mesa, and rebrand it as The Cove. Officials said the community was built in 1976 and was 96 percent occupied at the time of purchase.

Brendan Gibney, senior acquisitions associate at IEC, said the property’s current rents are below market for comparable properties in La Mesa, and IEC plans to position it as a more affordable option compared with Class A apartments in the local market.

Officials said the acquisition was made on behalf of the firm’s IEC Institutional Fund III, a $200 million fund targeting value-add multifamily investments throughout coastal California. Shane Shafer, Ed Rosen, John Chu and Kyle Pinkalla of brokerage firm Berkadia handled the sales transaction, with Berkadia’s David Bleiweiss handling debt placement.

IEC was founded in 1981 and invests in California apartment communities on behalf of endowments, foundations, family offices and pension funds. It has invested in more than 100 apartment communities since its founding.