CBRE announced the sale of Hamilton Cove, a newly renovated 15-unit multifamily property located at 560 Hamilton Street in Costa Mesa, California to a private investor for $5.625 million. The sale price represents $375,000 per unit and $600 per square foot.
CBRE Executive Vice President Dan Blackwell, First Vice President Mike O’Neill, and Associate Jack O’Connor represented both the repeat seller from Newport Beach and the repeat buyer, also from Newport Beach, neither of whom were in a 1031 exchange.
“We generated multiple offers and ultimately connected two repeat clients through our investor network, resulting in a seven-day escrow with a non-contingent offer,” said Blackwell. “The seller had confidence in the buyer’s ability to close escrow quickly, while the buyer seized the opportunity to acquire a highly renovated asset with top-of-market rents in the rapidly improving Westside Costa Mesa submarket.” Earlier this year, the same buyer purchased another multifamily property from this same seller.
“This was a turnkey property,” said O’Neill. “Hamilton Cove recently underwent a full renovation, with the seller investing over $1.45 million to upgrade all the units and the exterior.”
The apartment homes feature walk-in closets, in-unit washers and dryers, stainless-steel appliances, mini-split A/C systems, and real oak flooring. The property also includes a common patio area, drought-resistant landscaping, nine single-car garages, and 13 open parking spaces.
Renovations encompassed a full re-piping of the property, the installation of new tankless water heaters, updated electrical systems with new wiring, main panels, and subpanels, as well as mini-split air conditioning systems in all 15 units. Kitchens were completely remodeled with new cabinets, countertops, subway tile backsplashes, and stainless-steel appliances. Bathrooms received new tile flooring, showers, vanities, and fixtures. Additional updates included real oak wood flooring, recessed lighting, new windows, and new doors throughout the units.
Landlord utility costs are reduced via an in-place Ratio Utility Billing System (RUBS), with tenants covering water and trash expenses. The property is also individually metered for electricity. “Based on our research, current rents are at market rate, providing the buyer with immediate stable income,” O’Neill added. “Additionally, Hamilton Cove is located in an Opportunity Zone, which offers potential tax advantages for the buyer.”
“Costa Mesa remains a sought-after destination for renters, given its proximity to parks, excellent schools, freeways, and the amenities along Harbor Boulevard, Newport Boulevard, and 17th Street,” said O’Neill. “The Westside neighborhood is experiencing significant redevelopment, and investor interest is growing due to rising tenant demand, limited housing inventory, and the potential for above-average rent increases.”
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.
