Already this year more San Diego apartment complexes have been sold in the county, including conversions, than ever before.
In the quarter ended Sept. 30, 373 apartment complexes were sold, the highest number of sales since 1989, according to a report from Burnham Real Estate - Oncor International. By units, the total of 7,261 sold was the second highest since 1986. That total was surpassed only in the second quarter of 2002, when 7,466 units were sold.
Many of these apartment complexes are planned for condo conversion. With the average priced single family detached home at $567,000, as per the California Association of Realtors, San Diegans are looking to condos as an entry into the San Diego home market.
Condo conversions are the quickest way to increase the amount of condos needed to meet the demand of the San Diego housing market. Also, with the rising price of land in San Diego, it is harder for new construction condos to pencil out.
Year to date, there have been 1,049 apartment complex sales in the county involving 18,315 units. During the same period of 2003, there were 792 sales involving 12,479 units
The unusually high number of major sales involving 100 or more apartment units raised the total number of units sold. These included the sale of Carmel Mountain Ranch, a 338-unit complex in Carmel Valley, for $69.5 million, and Carmel Point, a 200-unit complex also in Carmel Valley, for $63 million.
In addition, a 107-unit complex was sold in Poway, along with the 150-unit Libby Lakes complex and 176-unit Meadowbrook, both in Oceanside. In Fallbrook, the 101-unit Pine View Apartment Homes also changed hands.
