CBRE announced the sale of a 10-unit multifamily property at 3926 Franklin Avenue in Fullerton, California to a private investor for $2,665,000 in an off-market transaction. The selling price represents $266,500 per unit and $360 per square foot.
CBRE’s Executive Vice President Dan Blackwell, along with Vice President Andrew Boukather, who is now with MBI Equity Partners, represented the repeat buyer in this off-market transaction. The seller was based in Las Vegas, Nevada, while the buyer was from Los Angeles County.
“We sourced an off-market, value-add opportunity for our repeat-buyer client,” said Blackwell. “The Franklin Avenue property is well-located in a desirable North Orange County submarket and features all two-bedroom units.”
Blackwell continues, “With a 61% upside in rents to reach market levels, the buyer has a prime opportunity to significantly increase the property’s value through substantial capital improvements, both interior and exterior, to realize its full potential. These improvements could boost the cap rate from the current 4.52% to an impressive 8.60%, providing a strong return on investment.”
Built in 1985, the two-story, 7,410-square-foot apartment building is located on a 0.44-acre lot near the intersection of Magnolia Avenue and Franklin Avenue.
“The long escrow with options to extend as needed satisfied the needs of the seller in this off-market transaction,” said Blackwell. This was the first time the property had been sold in nearly 20 years, with the last sale occurring in 2007.
Fullerton is a highly desirable submarket in Orange County. Located in northern Orange County, California, Fullerton is a vibrant and bustling city known for its rich history, diverse community, and thriving educational institutions. Home to California State University, Fullerton, and Fullerton College, the city boasts a large student population that contributes to its dynamic atmosphere. Fullerton offers a blend of suburban charm and urban amenities, with a variety of parks, cultural attractions, and a lively downtown area. The city’s strategic location, just 25 miles from Los Angeles, provides residents with easy access to major employment centers and recreational opportunities. Fullerton’s commitment to community development and quality of life makes it an attractive destination for both residents and investors.
“Fullerton offers a compelling investment opportunity for multifamily properties, thanks to its diverse and expanding population, strong job market, and rich community amenities,” highlighted Blackwell. “The city’s strategic location near major highways, educational institutions like California State University, Fullerton, and Fullerton College, as well as its vibrant downtown area, make it highly appealing to renters. This ensures consistent occupancy rates and reliable cash flow. Furthermore, Fullerton’s continuous development and revitalization initiatives contribute to rising property values, making it an ideal market for investors seeking long-term growth and stability.”
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has approximately 130,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.
