CBRE announced the sale of a 25-unit multifamily property known as Hillsborough Apartments in Oceanside, California, to a private investor for $8.62 million. The selling price represents $344,800 per unit and $447 per square foot.
CBRE’s Executive Vice President Dan Blackwell, First Vice President Mike O’Neill and Associate Amanda Fielder represented the 1031 exchange buyer, a repeat client based in San Diego County, California. The seller was from South Orange County, California.
“The property was a value-add opportunity that we sourced for our 1031 exchange buyer — a great 25-unit, 1980s multifamily investment in Hillsborough Apartments, located 1.7 miles from the beach in the coastal city of Oceanside,” said Blackwell. “The buyer had exchanged out of several smaller unit properties in Orange County, which our team recently sold.”
“Hillsborough Apartments’ rents are currently 18% under market, so the buyer has an opportunity to bring the rents to market level, bringing the closing cap rate from 4.59% to 5.85%,” said O’Neill. “The buyer also has an opportunity to convert a storage room to an Accessory Dwelling Unit to increase rental income.”
“We have worked with this repeat investor for many years and were able to consolidate some of their holdings by exchanging three smaller unit properties totaling 19 units into a single 25-unit property,” Fielder added. “We also assisted the buyer with obtaining financing, insurance and property management to complete the transaction.”
The apartment community, built in 1980 and remodeled in 2019, features 14 one-bedroom units and 11 two-bedroom townhome-style units. The units have either large patios or decks, with select units offering ocean views. The one-bedroom units have open floor plans, covered carports and access to an onsite laundry facility. The two-bedroom townhomes have two-car garages with direct access into the apartment along with in-unit washers and dryers. The common areas feature lush tropical landscaping.
Oceanside, a vibrant coastal city located in northern San Diego County, is known for its beautiful beaches, historic pier and busy harbor. With a population of over 170,000, the city blends suburban charm with oceanfront attractions, making it a desirable destination for residents and visitors. Its close proximity to the southern boundary of Marine Corps Base Camp Pendleton enhances its strategic importance and investment appeal.
The CBRE SoCal Multifamily Team has closed 19 multifamily transactions in Southern California in 2024 and currently has 13 multifamily properties under contract or in escrow.
