CBRE announced the sales of two six-unit multifamily properties in San Clemente, California, to individual private investors, totaling $4.82 million.
“Our targeted marketing generated multiple competitive offers through our investor network, and we closed escrow with an all-cash buyer in just 15 days,” said O’Neill. “This was the first time the property had been on the market in approximately 50 years.”
Fielder highlighted the investment’s value-add potential: “Current rents are nearly 30% below market levels. With recent exterior improvements in place, the new owner has the opportunity to make additional cosmetic improvements and interior upgrades to increase rents, potentially increasing the cap rate from the current 4.24% to a projected 6.08%.”
The property at 114 Avenida Aragon features a two-story building constructed in 1958 with a total of 4,010 square feet of rentable space on a 7,834-square-foot corner lot. The unit mix includes four two-bedroom and two one-bedroom apartments. Additional amenities include ocean views from select units, community laundry facilities, and individually metered gas and electric utilities. The property offers seven open parking spaces, onsite storage for added income potential, and well-maintained landscaping. Recent capital improvements include roof resurfacing in 2022, updated exterior staircases, a resurfaced and restriped parking lot, and a completed SB 721 deck and balcony inspection. Situated in a highly desirable coastal location with a Walk Score of 88, the property is only 0.4 miles from the beach and 0.7 miles from Downtown San Clemente, providing tenants easy access to local parks, schools, restaurants, and entertainment.
“Our marketing process generated eight property tours and multiple competitive offers through our investor network, resulting in a successful escrow close with an all-cash buyer in 30 days,” said O’Neill. “With ocean views from select units and a mix of five multifamily units plus a single-family residence, this property drew significant interest from investors.”
Built in 1965, the three-building property offers a total of 5,071 square feet of rentable space on a 12,636-square-foot lot. The unit mix consists of one studio unit, three one-bedroom units, and one two-bedroom unit, in addition to a three-bedroom single-family residence that features a private patio with ocean views. Four of the units have been recently renovated with updated flooring, kitchens, and bathrooms. Additional amenities include ocean views from select units and balconies, onsite laundry, seven garage parking spaces, well-maintained landscaping, and individually metered gas and electric utilities.
Located in a prime coastal area (Walk Score: 74), only 0.4 miles from San Clemente City Beach and 0.9 miles from Downtown San Clemente, the property offers the potential for further value creation. By adding an accessory dwelling unit (ADU), the buyer could increase the current cap rate from 5.35% to 5.88%.
San Clemente is a picturesque beach town in southern Orange County, bordering San Diego County, with a population of over 64,000 residents and an average household income projected to rise to $206,829 by 2028. Known for its scenic ocean, hills, and mountain views, as well as its Spanish Colonial architecture, San Clemente’s mild climate and natural beauty attract more than two million visitors annually.
“The San Clemente market provides multifamily investors with a unique mix of coastal appeal, high rental demand, and favorable investment conditions,” says O’Connor. “With its desirable location and strong demographics, San Clemente offers an outstanding opportunity for investors seeking long-term growth and stability in the coastal multifamily sector.”
This year, CBRE Multifamily SoCal has arranged the sale of five multifamily properties in San Clemente, underscoring the ongoing appeal of this coastal market.
