River Colony Condominiums
Introduction
Competing against 32 other prospective buyers, AMERICAN PROPERTY ENTERPRISES agreed in 2001 to purchase the 300 unit River Colony Apartments in central San Diego for $46,520,000. Originally built in 1991 as 1 and 2 bedroom condo flats, the property had been rented as apartments from the outset because of the local real estate recession of the 1990’s. Built along the south shore of the San Diego River in Mission Valley, the complex is adjacent to a popular 10’ wide concrete run/bike/walk path which extends along the River for almost 2 miles. It is also close to shopping, services, restaurants, and employment centers, and only 5 minutes on foot to the nearest San Diego Trolley Station with service to downtown, two local universities, and numerous other points.
Although it had Class “A” quality improvements at an “A” location when it was built, the condition and appearance of the buildings declined over the years as a result of the poor local economy of the 1990’s. Beneath its then-dull veneer, however, was a property with an approved condo map and excellent for sale condo floor plans and amenities.
Conversion of apartments to for-sale condos had not occurred in San Diego on a large scale since 1980-81. But conditions for a new condo conversion boom were ripe by 2001 when new housing costs for entry level buyers had reached nearly $400,000. Recognizing the conversion potential for River Colony, and realizing that no entitlement risks existed for it, AMERICAN PROPERTY ENTERPRISES aggressively out-bid its numerous competitors by carefully analyzing the for-sale condo market in San Diego County as a whole and Mission Valley in particular. With Sares Regis as its co-sponsor, AMERICAN PROPERTY ENTERPRISES sourced debt and equity financing from Hearthstone Advisors and closed the purchase in 2002.
Repositioning the property back to its former Class “A” condition required all-new interior finishes; a fresh, modern paint scheme; new monument signage; revitalized landscaping; a new fitness center; new common area flatwork; and pool deck improvements including new pool furniture. Sales commenced in June 2002 at prices ranging from the low to mid $200,000’s and closing of all 300 units was achieved by September 2003 (20/month average over 15 months). Sales totaled $78 million or an average of $260,000 per unit.
At the 2002 SAM Awards, sponsored by the Sales & Marketing Council of the San Diego County Building Industry Association, River Colony won six awards including Best Model Home Interior Design With An Average Sales Price Under $300,000 (Winner); Grand SAM Award for Best Attached or Detached Community With An Average Sales Price Under $500,000 (Finalist); Best Model Complex Landscaping for Attached or Detached Product With An Average Sales Price Under $500,000 (Finalist); Best Sales Office Over 500 Square Feet (Finalist); Best Brochure For a Single Community With An Average Sales Price Under $400,000 (Finalist); and, Sales Professionals, Average Sales Price Under $250,000 (Finalist).
At the 2002 ELAN Awards, sponsored by the Building Industry Association of Southern California, Inc., Los Angeles/Ventura County Sales & Marketing Council, River Colony won nine awards including Grand Award for Best Attached Community of the Year Under $250,000 (Winner); Best Interior Merchandising Of A Model Priced Under $250,000 – Plan B (Winner); Best Brochure For A Community Under $250,000 (Winner); Best Model Complex Landscape Design (Winner); Best Interior Merchandising Of A Model Priced Under $250,000 – Plan A (Finalist); Best Interior Merchandising Of A Model Priced Under $250,000 – Plan C (Finalist); Best Sales Office Over 500 Square Feet And Over (Finalist); Best Signage (Finalist); and Best Black & White Ad (Finalist).



CONTACT US
Suite #205
San Diego, CA. 92122
Phone: 858-546-7474
Fax: 858-546-7472
info@propertyenterprises.com