CBRE Arranges $77.5 Million Sale of Sunterra Apartments in Oceanside for 29th Street Capital
CBRE has arranged the $77.5 million sale of Sunterra Apartments, a 240-unit garden-style multifamily community located at 3851 Sherbourne Drive in Oceanside, California, the firm announced July 14. CBRE represented the seller, 29th Street, in the transaction. The buyer was not disclosed.
Property and Deal Details
Sunterra is a low-density, garden-style apartment community situated on approximately 14.24 acres in North County San Diego. Built in 1975, the property comprises 240 units, all configured as two-bedroom residences, each with a detached garage. The sale price equates to roughly $322,900 per unit.
Approximately 70% of the units have been renovated. Community amenities include a resort-style pool, fitness center, landscaped courtyards, and outdoor gathering areas. The property is located along the Interstate 78 corridor, providing access to employment centers in San Diego County.
CBRE's Rachel Parsons, Derrek Ostrzyzek, Mike Murphy, and Kenji Thomas advised the seller. Debt and Structured Finance support was provided by James Flinn and Justin Fitchett.
"Sunterra attracted strong investor interest due to its scale, coastal location," said Rachel Parsons, executive vice president at CBRE. "With a significant portion of units already renovated, the property offers an opportunity in a supply-constrained North County San Diego market that continues to benefit from strong fundamentals and sustained renter demand."
North County San Diego Market Conditions
According to CBRE Research, San Diego's multifamily market continues to benefit from limited new supply, strong population growth, and a diverse employment base anchored by the life sciences, technology, and defense sectors. Coastal submarkets such as North County San Diego remain in demand due to constrained development pipelines, proximity to major job centers, and relative affordability compared to homeownership, factors that support rent growth and occupancy stability over time.
Sunterra's location along the Interstate 78 corridor positions the property near one of San Diego County's key employment hubs. The surrounding submarket has demonstrated sustained renter demand, according to CBRE.
Transaction Team
The investment sales advisory team from CBRE included Rachel Parsons, Derrek Ostrzyzek, Mike Murphy, and Kenji Thomas. Debt and Structured Finance services were provided by James Flinn and Justin Fitchett, also of CBRE.
29th Street Capital, the seller, is a privately held real estate investment firm. AQUILA Commercial also participated in the transaction, according to deal records.