The Mogharebi Group (TMG) representing the seller has arranged the $12.2 million sale of The Wilson Townhomes, a 24-unit development in the Orange County community of Costa Mesa, Calif. The buyer of the fully occupied property is a private investment group from nearby Newport Coast.
Built in 1961, The Wilson Townhomes is located at 1032 W Wilson St. on a low-density two-acre site bordering both Newport Beach and Huntington Beach. Each of the two-bedroom apartment homes averaging 1,028 square feet are housed in six two-story residential buildings. Community amenities include a swimming pool, laundry rooms, leasing office, storage area, lush landscaping and garage parking.
The Wilson Townhomes sales price of more than $508,000 per unit represented a 31 percent increase over last year’s per unit median price of $386,236, and is indicative of the increasing investor appetite for multifamily assets in the area. According to PwC and Urban Land Institute’s “Emerging Trends in Real Estate 2022,” Orange County ranked fourth nationally in multifamily investment favorability.
“Many households are being priced out of the for-sale housing market in Orange County with median home prices exceeding $1.15 million and yet the supply of multifamily housing simply has not caught up with demand,” said TMG Senior Vice President Brett Bayless. “Rental demand in Costa Mesa has been strong for decades and considering the current high occupancy of 98 percent, robust forecasted household formation and lack of new supply, it’s very likely that demand will remain extremely strong in the foreseeable future. As a result we received multiple offers from a variety of investors.”
According to TMG research, 224 multifamily units are planned in Costa Mesa over the next five years falling well short of the expected formation of 810 new households over that same period.
