Marcus & Millichap, Inc. (NYSE: MMI) disclosed that its division Institutional Property Advisors (IPA) has decided to divest The Dylan. The Dylan is a 208-unit apartment complex in Oceanside, California. The property was divested for $74.1 million, or $356,250 per unit. The Dylan’s unit mix established in 1973 is one-, two- and three-bedroom apartments. The complex’s facility package covers two swimming pools, two spas, a gym, and a business center.
The Dylan is situated in Oceanside. Oceanside is an expanding city with single-family home prices rising to all-time highs throughout the submarket. The growing disproportion between monthly living expenses for renting versus owning should sustain low multifamily vacancies and place upward pressure on rental prices for the near future.
The shares of Marcus & Millichap, Inc. (NYSE: MMI) surged 1.79% as the firm gained +0.70 during the trading session of Friday. The firm has recorded a trading volume of 131.82K as compared to the average volume of 126.09K. In the past 52-week of a trading session, the share of the firm went up to $56.16% and went down -2.69%. MMI has a total market capitalization of $1.56 billion.
With the median home price in Oceanside at nearly $650,000, and the average effective apartment rent at about $1,850 a month, the monthly cost of renting is 42% below the cost of homeownership.