CBRE announced the sale of two multifamily rental communities located on the same street near the major thoroughfare of Euclid Street and Katella Avenue in Garden Grove, California. The transactions involved two buyers and sellers and encompassed a total of 14 units, with a combined value of $3.3 million.
In the first transaction, CBRE’s Executive Vice President Dan Blackwell and Senior Associate Andrew Boukather represented both the buyer and seller in the sale of an eight-unit multifamily property at 10772 Palma Vista Avenue in Garden Grove. The sale price was $1.87 million, equating to $233,125 per unit and $383 per square foot. The buyer was a private investor from Los Angeles County and the seller was based in San Diego County.
Blackwell commented on the successful sale: “Our marketing process generated multiple competitive offers through our investor network, and the procured buyer went non-contingent on day one. The investor who acquired the eight units at 10772 Palma Vista Avenue was a repeat client with a track record of purchasing several assets within Orange County and Southern California.”
Boukather added, “The going-in cap rate on the eight-unit property exceeded 5.80% on day-one cash flow. The seller had recently renovated six of the eight units, so the buyer plans to renovate the two remaining units, which is expected to yield a cap rate well above 6% once the property is fully stabilized.”
In the second transaction, Blackwell and Boukather represented the buyer in the sale of a six-unit multifamily property located directly across the street at 10761 Palma Vista Avenue. The sale price was $1.44 million, representing $240,000 per unit and $380 per square foot. The seller was a private investor based in Orange County, while the buyer was a repeat client from Newport Beach.
“This was a value-add opportunity as current rents were 40% below market,” Blackwell said. “The property’s strategic location near employment, parks, schools, shopping and freeways, combined with robust rental demand and projected growth, allowed the buyer an immediate opportunity to improve the gross potential income and increase property value through a well-executed renovation plan. We expect that the buyer will stabilize the property and achieve close to a 6% cap rate.”
CBRE structured the debt for the buyer to best align with the buyer’s value-add business plan for 10761 Palma Vista Avenue. CBRE’s Senior Vice President Gianni Novo, based in the firm’s West Los Angeles office, procured competitive bridge financing for the client.
“We closed escrow on both properties around the same time, working with two different sellers and buyers,” noted Blackwell. “We previously sold a triplex property to the buyer who purchased the six units at 10761 Palma Vista Avenue.”
The properties are located in Northeast Garden Grove, close to popular attractions such as Disneyland Park, Disney California Adventure Park, the Anaheim Convention Center, Angel Stadium, Honda Center, Loara High School, and The Promenade Shopping Center. Residents benefit from convenient access to CVS, Food 4 Less, Lake Intermediate School, Stoddard Elementary School, Simmons Elementary School, and Anaheim Urgent Care. Additionally, the properties enjoy excellent access to Interstate 5 and the 22 freeway, providing residents with easy connectivity to the broader Southern California region.
Blackwell highlighted the team’s commitment to working closely with clients to customize renovation strategies that yield higher rents and enhanced property values. He noted, “Our approach is tailored to each property’s unique market and specific location and the client’s objectives. Working closely with our clients, we guide them in capitalizing on value-add opportunities or turn-key properties and facilitating their 1031 exchanges to optimize cash flow and expand their portfolio.”