Source: The Bascom Group / #Apartments #Multifamily
IRVINE, CA - The Bascom Group, has acquired Hillside Terrace, a 32-unit apartment community located at 322 Hillside Terrace, Vista, California for $6,200,000 or $193,750 per unit or $228.00 per square foot. Olga Alworth with Meridian Capital arranged the debt financing and San Diego Private Bank provided the new loan. This was an off-market transaction with Rita Lancaster-Hannah with ACRE representing Bascom.
Built in 1988, the property is truly unique. Four apartment buildings are terraced along a slope just off one of Vista's major thoroughfares. The terracing of buildings along with the limited number of units per building gives each home a private, condo-like feel. Each unit at Hillside is a corner unit, limiting shared walls and increasing the presence of natural light. The spacious patios and balconies at the property offer tenants ample outdoor living space to enjoy the warm San Diego climate. Bascom's planned modernization program will remodel the interiors and enhance the amenities, exterior, and overall curb appeal.
Vista's apartment market continues to strengthen as average rent has increased for six consecutive years to $1,556 in 1Q 2016, a 32% increase since 2010. In 2016, the effective rent growth is projected to be 5.58%, outpacing San Diego's projected growth of 4.55%. The vacancy rate in Vista remained at 3.45%. High barriers to entry, including a scarcity of land for development and natural boundaries, constrain new supply.
Lee Nguyen, Senior Vice President for Bascom, adds "We're acquiring a well located, stabilized building that is ready for renovations in an expanding north San Diego economy. Our San Diego projects have performed well over the years so we are excited about the project."