Stratford Partners and LLJ Acquire Pacifica Palms Apartments in Escondido for $33.6 Million

A joint venture between Stratford Partners and LLJ has acquired Pacifica Palms Apartments, a 189-unit multifamily community in Escondido, California, for $33.6 million, Institutional Property Advisors announced Aug. 26, 2026. The deal implies a price of approximately $178,000 per unit for the 1965-vintage, garden-style property.

IPA executive managing directors Chris Zorbas and Alexander Garcia, Jr. represented the seller, Pacifica Palms LLC, and procured the buyer in the transaction.

Property Overview

Pacifica Palms Apartments is located at 1829–1873 E. Washington Avenue in Escondido, approximately 2.5 miles east of Downtown Escondido. The gated-entry community spans four parcels totaling eight acres and comprises 20 residential buildings. Amenities include a children's playground and picnic park, laundry facilities, and open parking. Individual apartments feature laminate flooring, heating, and air conditioning.

The property sits near retail at Felicita Town Center and public transportation at the Escondido Transit Center. The adjacent State Route 78 corridor supports more than 292,700 jobs, carries a 3.4% unemployment rate, and serves a trade area with a median annual household income exceeding $91,400.

A Rare Large Asset in a Supply-Constrained Submarket

IPA characterized the transaction as an uncommon opportunity in a market where larger multifamily assets seldom change hands. Over the prior year, Escondido recorded only four multifamily transactions totaling $6.8 million in sales volume — a figure that underscores the scarcity of investable product at scale in the submarket.

"The Escondido submarket has seen limited availability of multifamily assets of this size, making Pacifica Palms a rare, large value-add investment opportunity in a supply-constrained market," said Chris Zorbas.

The buyers are pursuing a value-add investment strategy, a thesis supported by the property's 1960s vintage and the submarket's demand fundamentals.

Rent-vs.-Own Gap Supporting Demand

Escondido home prices have risen 19% since 2021, widening the cost gap between renting and owning and keeping demand for rental housing elevated.

"Escondido continues to grow and home prices have increased 19% since 2021," Garcia said. "The disparity between monthly living expenses for renting vs. owning should sustain low vacancy and place upward pressure on Escondido's rental prices for the foreseeable future."

Rents in the Escondido submarket remain below $2,400 per month — a discount to the metro average — a relative affordability that positions the submarket to capture demand from renters priced out of coastal nodes. The Escondido/San Marcos submarket recorded approximately 1.0% rent growth in the first quarter of 2026, with limited new construction continuing to constrain supply.

About the Brokerage

Institutional Property Advisors is a division of Marcus & Millichap (NYSE: MMI), a commercial real estate services firm. IPA focuses on acquisition, disposition, and financing services for institutional properties and portfolios.