Former Condos Sell for $37M as Apartments

An Orange County buyer has acquired the 180-unit Temecula Creek Villas multifamily complex, which was originally built and marketed as condos, for $36.9 million and is operating it as an apartment project, according to Hendricks & Partners. The complex, which fronts State Route 79 at 31220 Samantha Lane in Temecula, is the only rental community in Southern Temecula and the closest rental property to the growing Pechanga Resort and Casino, notes Paul Runkle of the Inland Empire office of Hendricks & Partners.

Runkle, who represented seller A&M Properties West Inc. of Rancho Santa Fe, CA, points out that the complex is also the closest rental property to the soon-to-be-built Temecula Hospital. Constructed in 2007, the property consists of nine three-story buildings housing a mix of one-, two- and three-bedroom units averaging 1,073 sf and situated on 9.3 acres of land. Community amenities include detached garages with gated and controlled access, a fitness center, an indoor racquetball court, saunas, a swimming pool and a spa. The units feature full-size washer/dryers, nine-foot ceilings, walk-in closets, built-in microwaves, tile flooring and oversized patios and balconies.

Temecula Creek Villas was originally marketed as for sale condominiums during the second quarter of 2007, but transitioned to condominium rentals in August 2007, before any individual units closed escrow. Gables Residential Services is handling lease-up and has been retained by the buyer, a Newport Beach, CA-based investor who was represented by William Battaglia of WB Holdings Inc.
Runkle notes that the sale closed escrow within 65 days after it was initially placed on the market. Occupancy was 27% as of the close of escrow.