Vantage Pointe has its First Sale

Posted on October 14, 2010 | by Denny Oh

Downtown San Diego’s most unsuccessful condo project has finally had its first sale.  After trying to sell the 679 condos in a down market, the developer, Pointe of View, just sold the entire building to Equity Residential.  After being hit hard by the real estate downturn and an insanely large number of condos to sell, Vantage Pointe is now a true rental building.

Sales at Vantage Pointe officially stopped earlier this month and now Equity Residential will rent out the “condos” until further notice.  Equity Residential, one of the country’s largest apartment owners and managers, paid $200M for Vantage Pointe(which I think is too much to turn a profit if they were to sell the building).  If they plan on eventually selling these condos, I think they’ll have to do some fairly major rehabbing, changing the floor plans and making many of the units larger, decreasing the overall number of units.

Rents at Vantage Pointe have already gone up, but it will be interesting to see if the new owner holds firm on their new, higher prices.  My guess is that residents will bail out as well, finding nicer, less expensive rentals.  Good luck…

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