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The Real Deal 2014: top multifamily sale

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David Sperling, Michael Walseth, Stewart I. Weston and Christopher Zorbas

Marcus & Millichap

Sunterra Apartments
3851 Sherbourne Drive, Oceanside
240 units on 14.2 acres
Total consideration: $38.25 million





About the property:
The Sunterra Apartment Homes is a 240-unit garden-style apartment complex in the Tri-City area at Oceanside. Built in 1974 on 14.2 acres, the complex includes 13 residential buildings totaling 218,944 square feet of net rentable area. The apartments feature private patios or balconies. Every unit includes a garage, which was an attractive amenity to bidders on the property because of the potential for higher rental rates, according to Marcus & Millichap’s Christopher Zorbas.

Also on the property are a fitness center, pool, volleyball court, playground, on-site laundry and a picnic area with barbecue grills.

Closing the deal:
The complex sold in March 2014 for $38.25 million. The buyer was Sunterra Apartments LLC, controlled by Benedict Canyon Equities Inc. The acquisition was financed with a loan of $30.98 million from Onewest Bank. The seller was Legacy Sunterra Apartments Partners L.P., with Legacy Partners 2457 L.P. as its general partner. The seller was represented by Institutional Property Advisors, a multifamily brokerage division of Marcus & Millichap; the team included Stewart I. Weston, Christopher Zorbas, David Sperling and Michael Walseth.

Zorbas said the marketing process created a “competitive atmosphere,” with bidders in the double-digits. The high price tag meant the seller could pay off the existing loan on the property, Zorbas said.

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