CBRE arranged the sales of three four-unit multifamily properties in Orange County, Calif., for a total of $5.48 million to three separate private buyers in 10 days.
In the first transaction, CBRE’s Executive Vice President Dan Blackwell and Associate Amanda Fielder represented the seller in the sale of a four-unit multifamily property at 609 S. Cypress Street in Orange. The sale price was $1.78 million, representing $75,000 over the asking price. The property sold for $443,750 per unit and $350 per square foot. The buyer was a private investor based in Orange County. The seller was an out-of-state private investor.
“We generated six competitive offers at or above list price and procured an all-cash, 1031 exchange buyer who went under contract non-contingent within one week of our team marketing the property for sale,” said Blackwell. “Further, we were able to negotiate a 17-day close and seamless escrow process for the seller.”
The Covington-style fourplex at 609 S. Cypress Street in Orange was built in 1966 on an 8,491-square-foot corner lot. The property offers a mix of three two-bedroom units and one three-bedroom single-story unit. The property is within walking distance of the Orange Metrolink Station, Chapman University and Old Towne Orange, a historic community offering entertainment, restaurants, shops and activities.
In the second transaction, Blackwell and Fielder represented the seller in the sale of a four-unit multifamily property at 405 Nobel Avenue in Santa Ana. The sale price was $1.70 million, representing 100 percent of the asking price. The property sold for $425,000 per unit and $403 per square foot. The buyer and seller were private investors based in Orange County.
“We generated multiple competitive offers and procured an all-cash buyer and closed escrow in 30 days,” said Fielder. “This was the first time in over 20 years this property had been offered for sale.”
The Covington-style fourplex in Santa Ana was built in 1969 on a 7,475-square-foot lot. The property offers a mix of one-, two- and three-bedroom floor plans. The amenities include an on-site laundry facility and a private balcony or patio for each unit. There are four garage parking spaces and two open spaces. Recent capital improvements include new stairs, railings and exterior paint. The property is less than a mile from local freeways and near South Coast Plaza.
In the third transaction, Blackwell and Fielder arranged an off-market transaction for a 1031 exchange buyer in the purchase of a four-unit multifamily property at 143 W. Canada in San Clemente. The sale price was $2 million, representing $500,000 per unit and $519 per square foot. The buyer and seller were Orange County-based private investors.
“We facilitated an off-market transaction for an all-cash 1031-exchange buyer with a 15-day escrow,” said Fielder. “The idyllic location near the beach, ocean views from the balcony and in-place below-market rents were attractive to the investor. And, the seller was extremely happy with the buyer’s terms.”
Built in 1972 on a 5,994-square-foot lot, 143 W. Canada in San Clemente is located near the beach, parks and public transit. The property features a two-story building with Spanish architecture and two-double shared garages on the ground level. All units are two-bedroom, one-bath (962 square feet). The two-upper units have an ocean view. There is a shared coin-operated laundry room, which provides additional income.
“All three properties had in-place rents that were 25 to 33 percent below-market rent, which was an attractive value-add opportunity for the investors,” noted Blackwell. “A fourplex offers a lower-entry price point for investors looking to acquire multifamily properties and all three of these properties were well-located in a desirable infill market that was attractive to investors.”
“The fourplex multifamily market is extremely active and competitive right now and, due to a low inventory of quality assets, buyers are competing to get their hands on good opportunities,” Fielder explains. “Our team has relationships with a diverse buyer profile set, including 1031 exchange buyers and local-reoccurring investors who are aggressively chasing quality properties when the opportunity arises. There are also many first-time buyers interested in placing capital in the Orange County multifamily market.”
