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San Diego County’s 10 biggest multifamily landlords control 23% of the region’s 182,781-unit apartment stock, generating a monthly income of $86.4M, according to a report from MarketPointe Realty Advisors. Rising rents, up 8.4% in San Diego County over the last year, have increased landlord rental income by more than 50% over the last decade. For instance, Irvine-based Equity Residential reported income of $39M in 2005 from its 3,486 apartment units, reports the San Diego Union-Tribune. The company, which owns about the same number of apartments as in 2005, reported net operating income last year of nearly $59M—a 66% increase. Pictured is Equity Residential’s Vantage Pointe Apartments at 1281 9th Ave in Downtown SD, where one- and two-bedroom rents range between $1,965 and $2,230.
Apartment developer/owners complain about the high cost of construction and other barriers to building more units, such as the high cost and limited availability of land, environmental regulation and community opposition to higher density, but the San Diego apartment market has been good to them, both in terms of rental income and values. A recent Marcus & Millichap multifamily report found apartment investors paid on average $207k/unit, or 13% more, in the past 12 months than the prior year, and renters make up 48% of the region’s population.
The two largest multifamily landlords in the region are locally based R&V Management Corp and Newport Beach, CA-based Irvine Co, according to MarketPointe data. R&V Management, a 37-year-old company in Mission Valley, owns 8,000 apartment units that rent for on average $1,789/month, generating about $171M annually in rental income. The Irvine Co’s 6,216 units, with an average rent of $2,228/month, generate around $13.8M monthly.
Other major landlords:
San Mateo, CA-based Essex Property Trust, 5,819 units, $10.2M/month;
Locally based Garden Communities LLC, 5,214 units, $11.4M/month;
Phoenix-based Alliance Residential Co, 3,938 units, $9M/month;
San Diego-based HG Fenton Co, 3,155 units, $6.8M/month;
Locally based Hanken Condo & Assad Co, 2,587 units, $4.1M/month;
Denver-based Aimco, 2,032 units, $3.5M/month;
San Diego’s Property West, 1,944 units, $3.3M/month; and
Irvine-based Sares-Regis Group, 1,612, $3.4M/month. [SDUT]
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