Q2 2012 San Diego, California Apartment Property Sales Analysis

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Q2 2012 San Diego, California Apartment Property Sales Analysis

Metro Volume and Pricing

Single property apartment investment sales took off in the second quarter of 2012, Reis reports, with 19 sales totaling $240.8 million.* That is a solid quarterly total for this market. The mean price per unit was $161,000. Leading second quarter sales, and second among the top sales for the past 12 months, is the June 2012 transaction of the Legacy Apartment Homes in San Diego. The 412-unit building sold for $91 million, or $220,874 per unit. The buyer was R&V Management Corp. The seller was Garden Communities.

Top Submarkets

The Clairemont/Linda Vista submarket and the La Mesa/Spring Valley submarket had nearly identical second quarter transaction volumes at $185 million, the most for the quarter. However, La Mesa/Spring Valley led with 1,083 units sold, as Clairemont followed with 896. Clairemont led the two in price per unit, at $206,415, while La Mesa followed at $171,154. The submarket with the highest price per unit was La Jolla/University City, at $227,874.

Cap Rate Comparisons and Forecasts

San Diego’s mean transaction cap rate for second quarter sales was 6.0%, up from the 5.6% rate recorded the quarter before. The rate for both the nation and the West region is 6.6%, so San Diego is performing in line with its regional peers. The second quarter’s rolling 12 month cap rate is 6.1%, close to where it has held since 2009. Reis predicts little change in the rate through 2016.