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Deal of the Week/Sale

Escondido apartments for condo conversion

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Rita Lancaster-Hannah and William J. Creagan III of Melroy Investments represented the sellers of the Deal of the Week. Lou Bulte of Coldwell Banker Commercial represented the buyer.

The deal was the sale of the 105-unit El Norte Heights Apartments at 145-225 W. El Norte Parkway in Escondido for $18,925,000.

The buyer was El Norte Terraces LLC with Janez Investments IV-El Norte LLC as the managing member. John I. Kocmur is the manager of Janez Investments.

The buyer plans to perform extensive renovations to the property while completing the conversion process from apartments to condominiums. The acquisition and conversion is being financed by Chicago-based Corus Bank with a loan of $20,821,000. The buyer also secured an additional $5 million in equity through a joint-venture partnership with a Midwest-based institution.

The seller of the property was The Villas at El Norte LLC with Superior Communities LLC as the manager. Jack G. Melroy of Melroy Investments Inc. is the managing member of Superior Communities.

The complex was built in 1988 and consists entirely of two-bedroom, two-bath units with an approved tentative condo map. The units have fireplaces and most have either a private patio or balcony. The units will offer washer/dryers once the renovations are complete.

The property features include two swimming pools and spas, 50 garages, plus additional covered parking.

The seller is affecting a 1031 tax-deferred exchange.

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