CBRE announced the sale of Crestview Apartments, a 19-unit multifamily property in Costa Mesa, California to a local private investor for $5.025 million. The selling price represents $563 per square foot and $264,474 per unit and marks the property’s first sale in over 40 years.
CBRE’s Executive Vice President Dan Blackwell and First Vice President Mike O’Neill represented the seller, a private Orange County, Calif.-based investor. Blackwell, O’Neill and CBRE Associate Jack O’Connor represented the buyer, an Orange County-based private investor.
“Our marketing process generated multiple competitive offers through our investor network,” noted Blackwell. “This was a value-add opportunity as current rents were more than 30% below market and the property had an attractive 3.34% assumable loan, which our team assisted the buyer with assuming.”
O’Neill adds, “The property’s strategic location near employment, parks, beaches, schools, freeways, John Wayne Airport and best-in-class shopping, combined with robust rental demand and projected rental growth, allowed the buyer an immediate opportunity to improve the gross potential income and increase the property’s value through a well-executed renovation plan. We expect that the buyer can achieve close to a 6% cap rate.”
Crestview Apartments, located at 859 W. 19th Street, comprises a two-story, 8,931-square-foot building constructed in 1957 on 0.47 acres. The apartment community features primarily studio apartments with patios or a balcony and has an on-site laundry facility. This value-add property has in-place RUBS (Ratio Utility Billing System), where tenants pay for water and trash, in addition to the property being individually metered for electricity and master metered for gas. Recent capital improvements include new exterior paint, repaved asphalt, new decks, new windows throughout and wood replacement.
With a Walk Score of 82 (“Very Walkable”), the property benefits from its proximity to beaches, parks, Triangle Square, Costa Mesa Courtyards and Mother’s Market & Kitchen. Costa Mesa, situated one mile from the Pacific Coast in the heart of Orange County, is home to South Coast Plaza, one of the nation’s largest shopping centers, and the world-class Segerstrom Center for the Arts and South Coast Repertory theatre. Furthermore, the city serves as the capital of the action sports industry and the headquarters for prominent companies such as Hurley International, Volcom, RVCA and Vans.
“Costa Mesa remains a highly desirable market for multifamily investors, representing a flight-to-quality,” emphasized O’Neill. “Orange County, with its robust employment base and its convenience to excellent beaches, world-class shopping centers, and top-notch entertainment venues, continues to attract strong buyer interest in its multifamily market, particularly in the coastal region.”
