OCEANSIDE, CALIF. — Northwestern Mutual Life Insurance Co. has sold two Oceanside apartment properties totaling 658 units to San Francisco-based The Prime Group for $84 million. The purchases reinforce the company’s recent multifamily investment strategy. The Prime Group acquired a 560-unit California apartment complex in December.
“The Prime Group has continually pursued institutional-size apartment buildings in good locations in the western United States,” says Alejandro Lombrozo of Cushman & Wakefield’s San Diego office. “They felt these assets would produce a favorable return at the offer prices they submitted.” Lombrozo, along with the firm’s Ed Rosen and John Chu, represented Northwestern Mutual in the transaction. Rosen and Chu also represented The Prime Group.
The 424-unit Villages of Monterey complex, located at 3901 Mesa Dr., was acquired in the deal for $52 million. Located on a 42-acre site, the 21-year-old property encompasses 28 buildings. Amenities include three swimming pools, tennis and basketball courts, a racquetball court and a sauna. The 234-unit Montecito Village, located at 4302 Cassanna Way, also was purchased for $32 million. Montecito Village was built in 1989 on 11.6 acres. The property includes a swimming pool and spa, sand volleyball court, basketball court, fitness facility and a business center.
Current recessionary issues in the commercial real estate world had no impact on the sale.
“The transaction ran very smoothly,” Lombrozo says, “due in large part to The Prime Group’s ability to complete their due diligence and inspections extremely efficiently and in a very short time frame, and Northwestern’s ability to have all necessary information prepared ahead of time for the buyer’s review.”
The Prime Group plans to continue purchasing apartment complexes as investments, primarily focusing on California and other western states.
— Jon Ross