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.
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.