California Landmark Group has purchased Serenata, a new, 45–unit townhome community in San Diego, for $10.15 mil ($225.5k/unit). Located at 6410 College Grove Dr, north of the 94 Fwy by Chollas Lake Park, the complex was built in 2009 and consists of all three–bedroom/two–bath units.
CLG, based out of Westwood, obtained a 10–year loan from Freddie Mac at a fixed rate of 4.46 percent. The entire transaction – from purchase contract to close of escrow – lasted less than five weeks.
Situated at in the heart of the College Grove neighborhood less than four miles from San Diego State University, the Serenata Townhomes were originally developed as condominiums, but later converted to apartments as a result of the housing crisis. The community, currently 96% leased, is located across the street from the Marketplace at the Grove shopping center and directly adjacent to the Chollas Lake Recreation Center, which includes hiking trails, gardens, playgrounds and picnic areas. Residents also have convenient access to local freeways and several public transportation routes.
“These townhomes are well built and located in a great part of San Diego, which is why the occupancy rate is so high,”; said CLG President and Chief Executive Officer Ken Kahan. “The most attractive aspect of the deal, however, was the low–cost financing that makes this a profitable investment from the start, as well as the multiple exit strategies possible over the life of the loan. We’ll have the option to sell Serenata to another apartment investor with assumable low interest rate financing or sell to individual homeowners when the market improves,” Kahan added.
The three–level homes offer 1.1k sf of living space and feature ceramic–tiled floors, master suites with double sink vanities, walk–in closets, energy saving appliances, contemporary kitchens and sliding glass doors that lead to spacious decks. Each unit also includes an attached two–car garage.
Ed Rosen of Cushman and Wakefield represented the seller in the transaction.