Carlsbad Apartment Complex Blocks from Beach Sells for $20.9 Million

A 40-unit apartment building located less than a half mile from the beach in Carlsbad has been sold for $20.9 million, according to a brokerage.

The community, called Pure Beach Living, 662 Tamarack Ave., offers all three-bedroom floor plans, averaging 1,200 square feet.

CBRE's John Newton represented both the buyer, Dunbar Residential Investments, in partnership with Long Wharf Capital, and the seller, HFPL Dolphin Beach LLC, in the transaction.

"We've seen a flight to quality across asset classes post-pandemic, and this was a unique and highly prized coastal asset, so interest was strong," Newton said. "San Diego is increasingly attracting capital from outside markets as investors, nationally, remain bullish on the strength and stability of the San Diego economy coupled with an extremely constrained development environment."

Each unit features custom countertops and cabinets, upgraded fixtures, stainless steel appliances, large closets and a private patio. Originally built in 1978, the gated community features a pool and spa and barbecues.

"The rarity of the all three-bed mix, plus the proximity to the beach, commanded substantial interest and a premium in the market. Most apartments under development are small units. There aren't enough three-bedroom units to meet demand as households grow and single-family housing opportunities become scarcer," Newton said.

The buyers plan to cater to the growing household tenant base by implementing a value-added program and by upgrading the building and its amenities.

Newton added that the sale at the time of purchase was the largest in coastal Carlsbad this year.