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Vantage Pointe, San Diego’s largest mixed-use high-rise condominium tower, was sold recently to Equity Residential, one of the nation’s largest multi-family REITs. HechtSolberg attorneys represented Calgary based developer, The Pointe at Balboa Limited Partnership, in the structuring, documentation, completion and eventual sale of Vantage Pointe. Equity Residential plans to operate the 40‑story, 679-unit tower as an apartment complex.
Located in Downtown San Diego, Vantage Pointe was completed in 2009 as a for-sale mixed-use condominium project consisting of 679 residential condominiums, 26,425 square feet of retail space, and 968 underground parking spaces. HechtSolberg represented the developer during the initial structuring of the project and through construction. When completion of the project coincided with the downturn in the housing market, our common interest development group successfully restructured the project into a vertical master planned community – creating a hybrid condominium-apartment project. This structure allowed the developer to rent 244 of the 679 units as a separate sub-project and market for sale, with approval from the California Department of Real Estate, the first 99 units as another sub-project. With Fannie Mae’s approval, this structure effectively reduced the presale requirements to 70% of 99 units. Although the developer met the presale requirement, it was unable to successfully restructure the construction loan with its lender and again turned to HechtSolberg when it sought to sell the entire project.
Negotiating and closing the complex sale required simultaneously reaching an agreement with the lender on the project’s $210 million construction loan and readying the project for conversion to a full rental complex. HechtSolberg used concentrated teams of attorneys from the firm’s transactional, litigation, and common interest development practice areas to effectively represent and protect the developer’s best interests within a compressed due diligence and closing period. Within a combined due diligence and closing period of just five weeks, our attorneys worked together to address all aspects and complexities of the transaction, including protecting the developer’s interests in three-party negotiations with the lender and the buyer, quickly clearing mechanic’s liens and terminating existing condominium purchase contracts and interim occupancy agreements, and electronically producing due diligence documents to reduce cost and time.
As reported in MarketWatch, Vantage Pointe sold for $200 Million. It was conceived and constructed as the largest mixed-use high-rise condominium project in San Diego and concluded as one of the largest property sales in this region.