San Diego Apartment Sales in January Triple Over ’87 : Brokerage Company Study Shows 111 Buildings Changed Hands Compared to 27 During Month in ’87

The January sales pace of apartment buildings in the San Diego area was three times faster than a year earlier, according to John Burnham & Co., a San Diego-based real estate brokerage firm.

The 111 apartment buildings sold in the first 30 days of this year compares to the modest 27 rental properties sold in January, 1987. Last year’s low sales level reflected the early-1987 slowdown after many deals were closed in late 1986 to beat changes in the tax codes.

The 111 apartments sold in January contained 1,250 units, a 410% increase from the 245 units sold a year earlier. The report tracks only properties with three or more rental units.

North County had the best sales pace, with 21 rental properties changing hands in January. South Bay accounted for 10 sales and East County had eight.

Permits for only 28 new apartment units were taken out in January, compared to permits for 461 units a year earlier. The permits in January were valued at about $1.03 million, down 93% from a year earlier and the lowest value since May, 1982.

The slowdown was blamed on a temporary city ordinance that curbs growth.

Permits for 55 new condominium units were issued in January, with a permit value of $2.68 million. Permits for only 42 condo units were issued a year earlier, but their value was placed at $2.97 million.