IPA Closes Sale of Value-Add Opportunity in Carlsbad
CARLSBAD, Calif., Oct. 13, 2017 – Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announces the sale of Sommerset La Costa, a boutique luxury multifamily asset located in Carlsbad, California.
“There is a sparsity of luxury apartment homes in Carlsbad, resulting in a supply-demand imbalance for high-wage earners seeking rental housing in the submarket,” says Christopher Zorbas, senior managing director. “The combination of a unique unit configuration of oversized two-bedroom units, construction to condominium specifications, and an exceptional micro-location with access to highly rated public educational facilities distinguishes Sommerset La Costa as one of the premier rental communities in the area.”
Zorbas, Alexander Garcia Jr., senior managing director, David Sperling, senior director, and Tyler Martin, director, represented the seller, a joint venture partnership between a local sponsor and an institutional fund manager; and procured the buyer, a private investor who acquired the asset via a 1031 exchange.
“Due to the submarket’s solid fundamentals, there is significant market demand to support the completion of the interior renovation program, which has yielded monthly premiums more than $500 over non-renovated apartment homes,” adds Garcia.
Located less than two miles from Palomar Airport Road, a key artery that intersects many notable business parks in Carlsbad, the property is also near several lifestyle centers featuring entertainment, dining, and high-end shopping. Local employers and retailers include lululemon, Callaway Golf Co., TaylorMade Golf Co., Equinox, Gelson’s Markets, ViaSat, GoPro, and Apple.