San Diego Apartment Sales in 1987 Hit Peak in December

San Diego County apartment sales activity ended 1987 with December transfers reaching the highest levels of the year, according to the John Burnham & Co. San Diego County Apartment Report.

The 12-month figures reported, however, did show total sales and new construction permits returning to pre-1984 levels, said Burnham apartment broker George Carlson, who compiles the report.

He said for all of 1987, 1,145 projects changed hands, down 34% from 1,750 projects sold during 1986.He noted that the Tax Reform Act of 1986 made a dramatic difference when deals were rushed to completion in December, 1986, when more favorable capital gains rates and depreciation schedules were in effect.

“December, 1987, figures would have been higher if the supply of apartments available for sale had equaled buyer demand,” Carlson said, indicating that the real problem in San Diego is finding apartment owners willing to sell.

Another trend developed in 1987 for that area reflected fewer sales of apartments of 100 units or more, once so popular with syndicators prior to the tax law changes.