Victor Krebs, Rob Morgan Colliers International CentrePoint, 6303 El Cajon Blvd., San Diego 312 units with 4,000 square feet ground- floor commercial space Total Consideration: $14 million
About the property: In February 2012, CPIII CentrePoint LLC, an entity of Carmel Partners, purchased the 8.93-acre parcel located at 6303 El Cajon Blvd. for $14 million. This sale was the largest private redevelopment project in the college area, and will be catalytic in revitalizing that portion of El Cajon Boulevard. The property is entitled for 312 units with 4,000 square feet of ground-floor commercial space. The project approvals consisted of 97 townhomes, 204 flats, and 11 live/work lofts. The seller, CentrePoint, LLC, an entity of Douglas Wilson Investments LLC, was represented by Victor Krebs and Rob Morgan of Colliers International. Carmel Partners is a San Francisco-based real estate firm that specializes in multifamily properties nationwide. In 2011, Carmel Partners acquired the 85-unit 2015 Hancock Street Lofts project that is under construction on the 533-unit Carmel Pacific Ridge project across from the University of San Diego.
Closing the deal: This property was in foreclosure at time of marketing, with a loan thought to be considerably above the current value. The lender required a short escrow, and Krebs and Morgan quickly generated 15 offers. Through negotiations, the purchase price ultimately exceeded the debt amount, allowing the seller to pay off the lender in full. The area had almost no comparable new apartment buildings and the market rents were lower than thought viable for new development. Through market research, the Colliers International brokers were able to demonstrate the area’s potential, which overcame some preconceptions.
This 8.93-acre site had been vacant for more than five years, after a 1960s-era shopping center had been demolished. The project will bring additional housing, investment and income to an area that has seen little new redevelopment in the last 10 years.