CBRE announced the sale of two multifamily apartment communities totaling 38 units and $12.12 million in Orange County, Calif., in the completion of a 1031 exchange.
CBRE’s Executive Vice President Dan Blackwell, First Vice President Mike O’Neill and Senior Associate Andrew Boukather represented both the buyer and seller in the sale of 18 units at 1800 W. Glencrest Avenue in Anaheim for $4.8 million. Blackwell and O’Neill represented the seller of the 20 units at 1887 Monrovia Avenue in Costa Mesa for $7.32 million. All parties involved were private investors based in Southern California.
“These sales were a true team effort on how we are able to manufacture and execute 1031 exchanges for investors from start to finish,” said Blackwell. “I knew the owner of the 20-unit multifamily property in Costa Mesa was interested in selling after more than 20 years of ownership. Andrew knew the owner of the Anaheim property who was interested in exchanging his 18 units for additional units in Costa Mesa. The rare opportunity to purchase a pride of ownership multifamily property in Costa Mesa with a 3.5 percent assumable non-recourse loan with eight years remaining on the term was very attractive. Additionally, there was substantial rental upside for the buyer to implement.”
“We also procured a Los Angeles-based buyer for the 18-unit multifamily property in Anaheim, an area with fewer restrictions and a strong employment base,” noted Boukather. “And, due to the lack of inventory, we were able to negotiate a non-contingent offer.”
According to O’Neill, “The purchase of the Anaheim and Costa Mesa properties represented a ‘flight to quality’ for the buyers. The seller of the Costa Mesa property was extremely happy that he got his price and terms and provided sufficient time for the buyer to sell his Anaheim property. With limited availability for future development, there is a high barrier to entry for future housing competition, making these low-density properties irreplaceable.”
Built in 1962, the 18-unit multifamily property at 1800 W. Glencrest Avenue sits on 0.44 acres and consists of two two-story buildings. The property is located on a quiet tree-lined street in the strong rental market of Anaheim and offers a diverse unit mix of three studios, nine one-bedroom and six two-bedroom floor plans. An in-place ratio utility billing system (RUBS) has tenants paying for all utilities, including water and trash. Community amenities include a laundry facility, garage parking and a large central courtyard with well-maintained landscaping. The property recently had major interior and exterior upgrades including new flooring, appliances, updated bathrooms and kitchens, windows, stairs, railings and fascia.
Residents of 1800 W. Glencrest Avenue are within walking distance of major retailers including Target, Walmart and The Home Depot. The property is also adjacent to Interstate 5 and within one mile of the 91 Freeway, and minutes to cultural activities, shopping, restaurants and job centers. There are more than 280,000 people within a three-mile radius with an average household income of $99,413.
The 20-unit multifamily property at 1887 Monrovia Avenue in Costa Mesa, Monrovia Arms Apartments, was built in 1959 on 0.46 acres and consists of a single two-story building, conveniently situated near shopping centers, restaurants, coffee shops and the beach. Located 1.2 miles from Triangle Square and the 55 Freeway, the apartment community features one- and two-bedroom floor plans with private balconies in select units. Recent renovations in select units include granite countertops, wood-style flooring and stainless-steel appliances. Monrovia Arms Apartments is a gated community with a swimming pool, BBQ area and a community laundry room.
According to Blackwell, “Monrovia Arms Apartments was only one of two 20+ unit apartment communities on the market in Costa Mesa at the time.”
Costa Mesa is a coastal-adjacent city that is home to South Coast Plaza with over 2.8 million square feet of retail with over 275 stores and restaurants and the Segerstrom Center for the Arts. Also, it serves as the capital of the action sports industry, with headquarters for companies such as Hurley International, Volcom, RVCA, Rip Curl and Vans. More than 156,680 people are within a three-mile radius, with an average household income exceeding $135,495.
Blackwell adds, “Orange County multifamily assets continue to attract buyers looking for flight to quality and we expect this investor demand to continue into the near future.”
