IAC Continues San Diego Area Expansion

Continuing an expansion in the San Diego area, Irvine Apartment Communities Inc. said Tuesday it has purchased two sites where it will build luxury apartments.

The real estate investment trust said its investment in the properties will total $75 million.

IAC will build 232 units on 4.2 acres in University Town Center near La Jolla, and 336 units on a 13.5-acre site in Stonecrest Village, a small planned community overlooking Interstate 15 in the Kearny Mesa area. The latter site had been owned by California Pacific Co., a home builder affiliated with IAC and Irvine Co.

IAC owns and operates 53 apartment complexes in the master-planned communities of Orange County’s Irvine Ranch. It has been aggressively expanding into upscale San Diego and Silicon Valley markets where it believes its experience provides a competitive edge. It purchased a 923-unit apartment complex in La Jolla last summer for $127 million.

William W. Thompson, the IAC senior vice president leading the expansion drive, said the San Diego apartment market, like Orange County’s, is extremely tight. He said he is continuing to look for apartments to buy but is spending 90% of his time studying sites to build on.