There is a string of investors shying away from San Diego, as pricing has made multifamily investments a challenge. And ConAm head of acquisitions George Lloyd tells Bisnow his firm is joining the trend.
George says the San Diego-based company has looked outside its home confines for its latest multifamily purchase. George tells us it's increasingly difficult to find available value-add plays in the metro area, as the city has become an incredibly desirable market. "We are actively seeking deals here, but as you heard from everybody, it's not easy to find,” George says. While you can still buy apartments below replacement costs, anything built after 2000, “you are going to pay pretty close to replacement cost." As we told you last month, San Diego-based MG Properties isn't buying in the city either.
George says ConAm recently purchased PeakView Place in Englewood, which is a value-add property in the Denver Tech Center with access to light rail. Given the burgeoning employment base in the area, the deal could give ConAm blockbuster access to new customers. While he was mum on current rents, George predicts the firm should be able to push them by $200/month once $5.5M in renovations are complete, a program that will include new siding, windows and interior unit upgrades.
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