A private investor purchased two four-unit multifamily properties in Huntington Beach for a combined price of $5.425 million. The seller is based in Huntington Beach, while the buyer is from Westminster. Dan Blackwell and Mike O’Neill with CBRE represented both the buyer and the seller in the two transactions. Neither the buyer nor the seller was in a 1031 exchange.
Built in 1972, the neighboring fourplexes are located at 321 22nd Street and 317 22nd Street, about three blocks in from the coast on the south side of Goldenwest Street. Each of the two-story multifamily buildings spans 4.1k sf and sits on a 5.8k sf lot.
Both fourplexes feature a mix of one-, two-, and three-bedroom floorplans (one one-bedroom unit, one two-bedroom unit, and two three-bedroom units). Each apartment unit has a private outdoor space with either a patio or balcony, and the units are individually metered for gas and electricity. Both communities feature six single-car garages, one open space parking spot, and a laundry facility. A new roof was installed on both buildings in 2019.
“We represented the repeat client seller and generated eight competitive offers, selecting an all-cash buyer who wanted to purchase both assets. We closed escrow in 32 days at 98.6% of the asking price,” Blackwell noted. “The two neighboring multifamily assets are identical properties, each sitting on a double lot. As a result, the investor acquired a total of four contiguous lots, offering potential alternative asset plans.”
“The properties are located in downtown Huntington Beach, one of the most desirable rental markets in Southern California, offering proximity to beaches, retail, dining, and entertainment,” O’Neill pointed out. “Given their prime location, the two 22nd Street apartment buildings also present a value-add opportunity. Through a renovation plan, current rents can be increased by approximately 20% to reach market levels allowing the investor to capitalize on unrealized income potential.”
