Recent transactions in San Diego are highlighting the strength of the area’s multifamily market. In one such sale, Pacific Urban acquired a 404-unit apartment building in Oceanside for $196 million, or about $485,149 per unit. The property was sold by Apartment Income REIT, according to a first quarter multifamily market report from Kidder Mathews.
Referred to as Sofi Ocean Hills, the property is located at 3500 Windrift Way and features a mix of one-, two- and three-bedroom apartments. According to Apartments.com, the apartment units range in size from 671 to 1,115 square feet and range in price from $2,493 to $2,965 per month.
The luxury apartment complex also includes various amenities, such as a heated pool, a fire pit lounge, a self-service car wash, a dog park, fitness center and more.
Additionally, the property’s location puts tenants in close proximity to public transportation. The property is also within driving distance to downtown Oceanside as well as many of San Diego’s beaches.
Pacific Urban has been busy in San Diego during the first quarter of the year. Prior to its most recent acquisition, a joint venture between Pacific Urban and IDEAL Capital Group also sold a 172-unit luxury apartment building in San Diego’s East Village neighborhood. The property is located at 453 13th Street and sold for $60.25 million, or about $350,290 per unit.
Pacific Urban is a Palo Alto-based investment company founded in 1998. With a focus on multifamily investments, the company’s 20,000-unit apartment portfolio is valued at $8 billion. The company’s portfolio spans major markets across California. Pacific Urban also maintains properties in Seattle, Denver, New York, Connecticut, New Jersey, Maryland and Virginia.
San Diego’s multifamily market continues to draw investors, with vacancy rates at exceedingly low rates. According to the report from Kidder Mathews, multifamily vacancy hit 2.4 percent in the first quarter of 2022, compared to 3.3 percent the year prior. At the same time, average rental rates have increased about 12.5 percent year-over-year from $1,878 per month in the first quarter of 2021 to $2,112 per month in the first quarter of 2022. While rental rates remain high, average sales prices have also gone up more than 50 percent to $445,101 per unit. In the first quarter of 2021, sales prices averaged $291,213 per unit.
