Institutional Property Advisors Brokers $74.1 Million North County San Diego Multifamily Sale

Rhea-AI Summary

Marcus & Millichap (NYSE: MMI) reported the sale of The Dylan, a 208-unit apartment complex in Oceanside, California, for $74.1 million, or $356,250 per unit. With median home prices hitting around $650,000 and average rent at $1,850, renting is 42% cheaper than owning. The property, built in 1973, offers a range of amenities and has seen renovations on 50% of its units, suggesting potential for further value increase. IPA's team facilitated this transaction, highlighting the strong demand in Oceanside's real estate market.

Positive

• The Dylan sold for $74.1 million, indicating strong demand in the Oceanside real estate market.
• Renting at $1,850 is 42% cheaper than owning a home priced at $650,000, which may sustain low vacancy rates.
• Approximately 50% of the apartments have been renovated, providing potential for increased property value.

Negative

• None.

Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announced today the sale of The Dylan, a 208-unit apartment complex in Oceanside, California. The property sold for $74.1 million, or $356,250 per unit.

“Oceanside is a growing city with single-family home prices rising to all-time highs throughout the submarket,” said Christopher J. Zorbas, IPA executive managing director investments. “The increasing disparity between monthly living expenses for renting versus owning should sustain low multifamily vacancies and place upward pressure on rental prices for the foreseeable future.” Zorbas, Alexander Garcia, Jr., and Tyler J. Martin represented the seller, 29^th Street Capital, and procured the buyer, 550 Los Arbolitos Owner LLC. “With the median home price in Oceanside at approximately $650,000, and average effective apartment rent at about $1,850 a month, the monthly cost of renting is 42% below the cost of home ownership,” added Garcia.

Located close to Downtown Oceanside and the Oceanside Pier, the property is conveniently accessible from California State Routes 76 and 78 and Interstate 5. Major employment hubs, including Palomar Airport District, Ocean Ranch Corporate Center, and Camp Pendleton are nearby. San Diego State University, the University of California San Diego, Mira Costa Community College and Palomar College are within a short drive.

Built in 1973, The Dylan’s unit mix is one-, two- and three-bedroom apartments. The complex’s amenity package includes two swimming pools, two spas, a gym, and a business center. “Previous ownership tastefully renovated approximately 50% of the interiors,” noted Martin. “Further upside can be attained by renovating the remaining interiors and by making strategic upgrades to those that have already been touched-up.”

About Institutional Property Advisors (IPA)

Institutional Property Advisors (IPA) is a division of Marcus & Millichap (NYSE: MMI), a leading commercial real estate services firm in North America. IPA’s combination of real estate investment and capital markets expertise, industry-leading technology, and acclaimed research offer customized solutions for the acquisition, disposition and financing of institutional properties and portfolios. For more information, please visit www.institutionalpropertyadvisors.com.

About Marcus & Millichap (NYSE: MMI)

With over 2,000 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed 8,954 transactions in 2020 with a value of approximately $43 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com.

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FAQ

What was the sale price of The Dylan apartment complex in Oceanside, California?

The Dylan was sold for $74.1 million.

How many units does The Dylan have?

The Dylan has 208 units.

What is the average effective apartment rent in Oceanside?

The average effective apartment rent in Oceanside is about $1,850 per month.

What is the median home price in Oceanside?

The median home price in Oceanside is approximately $650,000.

Which company completed the sale of The Dylan?

The sale was completed by Marcus & Millichap (NYSE: MMI) through its division Institutional Property Advisors.