A seven-unit multifamily property in downtown Laguna Beach on Park Avenue and Goff Street was purchased by a private investor for $5.89 million. The Laguna Beach Apartment deal works out to a price of $1,275 per square foot and $841.4k per unit, making it one of the highest prices per unit sales in the Laguna Beach multifamily market over the past six months, according to CBRE.
The transaction encompassed two adjacent parcels totaling 10k sf of land in the heart of Laguna Beach. These parcels, located at 363-397 Park Avenue and 502 and 504 Goff Street, feature a Walk Score of 97 (a “Walker’s Paradise”) just steps from downtown and the water. The strategic positioning near restaurants, grocery stores, retail shops, parks, schools and entertainment further increases their desirability, noted O’Neill.
The property at 363-97 Park Avenue comprises five one- and two-bedroom single-family detached cottages, each featuring a fireplace, individual water heater and laundry hookup.
The property at 502 and 504 Goff Street consists of a duplex with a three-bedroom penthouse unit offering ocean views, along with a studio unit. The duplex also includes a non-conforming studio unit. Additionally, the Goff Street property includes two garage spaces.
Dan Blackwell and Mike O’Neill with CBRE represented the Northern San Diego County-based seller, a repeat client. The buyer was based in Laguna Beach. Both the buyer and seller were in a 1031 exchange. According to Blackwell, the listing generated multiple competitive offers and the transaction closed escrow at 99% of the asking price after only two days of marketing.
“The buyer has an opportunity to bring the rents to market level to achieve a cap rate of 3.93%,” commented O’Neill. “Moreover, the buyer stands to benefit from income generated by a non-conforming studio unit situated in the duplex building.”
