LP Buys 22-Unit San Diego Complex

SAN DIEGO-In the latest sign that multifamily investment is continuing at a steady pace in San Diego, an LP has shelled out $110,227 per unit for the San Diego apartment complex known as French Quarters.

Buyer H & F White Family LP of San Diego has picked up the asset from MH Financial, which is also locally based, for more than $2.4 million. Located at 4477-4485 ½ 30th St., the multifamily property contains a total of 22 units.

The recent transaction was brokered by Steve Huffman and Jules Arthur of the San Diego office of Hendricks & Partners.

Investment activity in the San Diego County apartment market is still strong, with sale prices expected to continue on an upward climb. The median price is “expected to post a 7% increase over the next year, to $107,000 per unit,” according to a Marcus & Millichap Real Estate Investment Brokerage Co. report issued in August. The cap rate has been steadily declining, dropping 100 basis points over the past 12 months to 5.9% at mid-year 2003. However, as Marcus & Millichap’s researchers point out, “investors believe in the future of the market, as they see a growing number of jobs and low affordability securing a floor under prices.”