The Mogharebi Group (TMG), has announced the $127 million sale of Regency Palms, a 310-unit gated multifamily community in Huntington Beach, California in what is one of the largest multifamily transactions in Orange County over the last 12 months.
Regency Palms benefits from numerous demand drivers including its highly ranked schools, proximity to Orange County’s world-famous beaches and strong rental demand driven by the high cost of home ownership in Huntington Beach which boasts an average home price of $1.265 million.
The transaction was arranged by Senior Vice Presidents Brett Bayless, Bryan LaBar, and Associate Advisor Nick Earl from the TMG headquarters located in Costa Mesa, California. The seller, an institutional investment firm which owned the asset for nearly 30 years, sold it to a private local Orange County buyer.
“Private investors are taking advantage of a period of buyer hesitation, with institutional capital either remaining on the sidelines or showing constraint in acquisition valuations,” said Senior Vice President Brett Bayless.
“Today’s market dislocation is creating an opportunity for private investors with a longer, often multigenerational, investment horizon and deeper knowledge of local submarkets,” added LaBar. “Transactions such as these can be the early signs of a stabilizing market, and an indication of the long-term demand for Southern California assets.”
“There is a high barrier to entry, especially in Orange County’s coastal communities which is considered a safe haven for many investors due to the strong demand for rental housing and high replacement costs,” added Bayless. “Much of the inventory are considered long-term hold assets so it’s rare to have an opportunity to acquire a property, especially of this size and quality in this market.”
