Institutional Property Advisors (IPA), a division of Marcus & Millichap, announced the sale of Studios 435, a 86-unit apartment asset in San Diego, California. The property sold for $23.25 million, or $270,349 per unit.
“Originally constructed as Hotel Metro in 1990, Studios 435 was transformed into an elegant urban apartment asset in 2018,” said Christopher J. Zorbas, IPA executive managing director investments. “The former single-resident occupancy hotel delivers furnished rental options that provide the flexibility of easy moving with lower costs upfront.” Zorbas, IPA’s Alexander Garcia, Jr. and Marcus & Millichap’s Austin Huffman represented the seller, an affiliate of FPA, and procured the buyer, Insight Investment Partners. “In the last five years, only 10 of the 121 buildings over 50 units in this zip code have traded hands,” added Garcia. “Annual rent growth in the area, led by luxury and mid-tier inventory, has reached 10.1 percent.”
Studios 435 is located one mile from outdoor entertainment venue Horton Plaza, which is undergoing a $330 million redevelopment in East Village, the largest urban neighborhood in Downtown San Diego. East Village encompasses 130 blocks, has a growing community of 40,000-plus residents, proximity to Petco Park, rooftop bars, cafes, restaurants, galleries, and hotels. The neighborhood has a high walkability score, an excellent transit system, and is close to the Gaslamp Quarter, Balboa Park, Little Italy, and the San Diego Convention Center.
Studios 435 is composed of two four-story buildings on opposite sides of 13th Street with units ranging in size from 188-336 square feet. Although the community does not provide parking, it does boast a full range of amenities including several gathering spaces, a lobby/clubhouse, community-wide Wi-Fi, and an indoor/outdoor fitness center. Apartments have European cabinetry, stainless-steel appliances, built-in Murphy beds, and smart-home features. Select units have balconies.