The $111 million sale of the 230-unit Jefferson La Mesa apartment property in La Mesa, California, set a per-unit price record topping $482,000 for the eastern San Diego suburb. The deal also could set the stage for rising valuations and future rent growth in what traditionally has been a low-profile area with generally lower prices than those fetched for properties in central San Diego.
Brokers said the building, completed in 2022, was still in lease-up phases at the time the sale was negotiated and eventually closed in August 2023 when interest rate fluctuations were roiling investment markets nationwide. CoStar data showed the apartment sale was the sixth-largest by total price for the San Diego region during last year and the largest for the East County area.
For its potential to reshape demand and investment fundamentals in the city's suburbs, a panel of local judges selected the deal for a CoStar Impact Award for sale/acquisition of the year in San Diego.
About the Deal: Investment firm R&V Management of San Diego acquired the property at 4949 Baltimore Drive in La Mesa from investor JPI of Irving, Texas.
What the Judges Said: "This is an exceptional sale reshaping the La Mesa market and stands out for its impact on the community," said Abraham Edid, co-founder and CEO of development firm Blue Centurion Homes. Meanwhile, Amy McNamara, principal at brokerage Urban Property Group, said, "The time, effort and cost to bring this project to fruition in a market that is greatly in need of increased housing, makes this project a win for San Diego and the local community." Peter Beauchamp, senior vice president at brokerage Kidder Mathews, commended those involved in the high-value deal for "executing a sale transaction during volatile capital markets."
They Made It Happen: Hunter Combs, Lauren Salazar and Trevor Brotman of brokerage Walker & Dunlop represented the seller. The buyer was self-represented.