A large apartment complex in the 5000 block of Santa Monica Avenue in Ocean Beach has sold for $7.5 million. This is the second time “Playa”, the 22-unit apartment at 5041-5043 Santa Monica Avenue, has been sold in less than 2 years.
The complex, built in 1957, sits on a one-third-acre lot (assessor’s parcel 448-092-07 and 08) and consists of 14 one-bedroom units and eight two-bedroom units, totaling 14,978 rentable square feet. It has a courtyard, 22 off-street parking spaces and an on-site laundry facility.
The sale also represents one of the largest in terms of units in recent years – and joins a trend we have been watching of late – the sale of apartment complexes in northwest OB – this sale is the 5th this year alone. (We think the trend is “unprecedented“.)
Placed on the market in April for $7.6 million, it appears the owner obtained something just under the asking price. We commented at the time with the following:
Somebody’s got to do it, right? Somebody’s got to come in to OB and flip some apartments and make some millions. Right?
That’s exactly what the owners of the 22-unit apartment complex at 5041-43 Santa Monica Avenue believe. They came in about 2 years ago, bought them for $4.75 million, did some improvements ( a lot they claim) and have now turned around and are trying to sell the place for $7.6 million.
That’s almost $3 million. In 2 years – not bad. Of course, they spent a bunch in the improvements. We reported on the original sale back in September 2013.
Buyer: VKS 4th Avenue LLC, Bob Smith – managing member, with addresses at 234 Winterhawk Lane, Encinitas 92024. Financed by a loan of $4.3 million through JPMorgan Chase Bank .
Seller: 5041 Santa Monica Avenue LLC, with 5041 Santa Monica Avenue Manager LLCas the manager. Silverado Canyon Partners LLC is the manager of 5041 Santa Monica Avenue Manager and Michael Jara is the manager of Silverado Canyon.
____________
Editor’s note: We have to add that the OB Rag obtains much of our information about apartment sales in OB from the San Diego Daily Transcript – which just announced that they are folding up in September. Unless we can find another source of this type of information, OBceans will be terribly under-informed about an important aspect of the local economy.
{ 2 comments… read them below or add one }
Sadly, OB has turned into a gentrified PB. I’m leaving for Seattle in a couple of weeks. It’s been fun.
Like it says in the title of this article “unit sells for 2nd time in 2 years”, then goes on to say they made almost $3 million in 2 years.
That’s got to translate into some crazy ridiculous rent hikes !! SOMEBODY’S got to re-coop there investment !
Again a much to familiar story. Greedy, money hungry House flipping trend over the years, has RUINED our affordable communities !
I still don’t understand how most people afford there rent here & San Diego in general ??
The house flipping business In Vegas for instance (i know weather is incomparable) but, they don’t EVEN come close to the outrageous profit margins as here…