Encinitas multifamily properties sell for $10 million in off-market deal
A private investor has acquired a pair of multifamily properties totaling 24 units in Encinitas for $10 million. Located within walking distance of one another, the properties consist of two identical two-story apartment structures located at 1237 and 1353 N. Vulcan Ave. The seller, the Joseph Family Trust, had owned and managed the properties since initially developing them in the 1970s. They eventually decided to sell them now as part of a 1031 Exchange in order to retire from management and keep a steady source of income.
Multifamily investment specialists Clark Rorbach, Ray Adams and Will Creagan with Cushman & Wakefield’s San Diego office represented the seller in the transaction. During their career, the team has successfully negotiated hundreds of 1031 Exchanges involving multifamily properties, and drew on their expertise and experience to successfully complete this unique and complex transaction.
Rorbach said, “Despite having to overcome some challenges, this was a very smooth off-market transaction across the board. Our team was able to structure a few extensions into the closing date of the relinquished properties, allowing the seller additional time to research the national marketplace and identify the best exchange investments for his retirement. The extra time in the transaction helped to dramatically reduce the stress and risk in purchasing the right replacement properties—all of which can be common issues in a 1031 Exchange.”
According to Rorbach, after more than four decades of ownership, the seller was seeking a new investment venture in their retirement years, one which required zero management or maintenance on their part. The seller used the funds from the disposition of the North Vulcan Portfolio to move into two out-of-state retail triple-net leased properties, both featuring investment-grade tenants with long-term, in-place leases.
In completing the full exchange, not only was the Cushman & Wakefield team able to identify a pair of ideal investment properties, the exchange was completed within 1 percent of the target purchase price and in under 10 days from the closing of the relinquished property to the acquisition of the replacement properties.
The property’s unit mix consists of (16) 1-bed/1-bath units, (4) 2-bed/2-bath units, and (4) 2-bed/1-bath units. Rorbach said, “Due to the highly attractive nature and location of the Vulcan properties, we were able to generate very strong pricing.”
To learn more, visit www.cushmanwakefield.com
— Submitted news release
Sign up for the Encinitas Advocate newsletter
Top stories from Encinitas every Friday for free.
You may occasionally receive promotional content from the Encinitas Advocate.