CBRE announced the sale of a newly renovated, nine-unit multifamily property located at 425 E. Wellington Avenue in Santa Ana, California to a local buyer for $3,105,000. The sale price represents $345,000 per unit and $590 per square foot.
According to CBRE, the sale set an all-time high watermark for a multifamily sale in Santa Ana, achieving the highest sales price per square foot for a property and the highest price per unit for a multifamily property in the city since April 2023.
CBRE’s Executive Vice President Dan Blackwell, Senior Associate George Felix, and Associate Amanda Fielder represented the repeat seller based in Tennessee. The buyer was based in Orange County, California. Neither party was involved in a 1031 exchange.
“Our comprehensive marketing process generated multiple competitive offers and tours, and we closed escrow at 98% of the asking price for this turnkey asset ideally situated in the highly desirable French Park District,” Blackwell noted. “Our seller was a repeat client for whom we had already sold two multifamily properties in Costa Mesa in 2024.”
According to Felix, who also serves as the team’s Transaction Manager, this is the fourth time that the CBRE Multifamily SoCal team has sold this property. The team most recently sold the property in December 2020 to the current sellers.
With a Walk Score of 87, the property offers walkable amenities including Downtown Santa Ana, cultural activities, shopping, restaurants, and job centers. The area has a population of more than 137,684 people within a three-mile radius, with an average household income of $107,513.
According to Felix, the seller recently invested more than $1 million in extensive renovations to both the interior and exterior, including floor plan upgrades and finishes. These renovations included reconfiguring all the floor plans to have a more open and modern look, converting six studios into one-bedroom units, adding vaulted ceilings in all second-floor units, completing structural retrofits, including new stem walls, foundational beams, and shear walls around the entire perimeter, installing an entirely new plumbing system with washer/dryer hookups in every unit, all new electrical throughout including new panels with increased power and recessed lighting throughout every unit, all new insulation, drywall, and baseboards, installing laminate flooring and a cork layer in second story units to dampen footsteps, redoing tiled bathrooms including new fixtures, glass shower doors, and connecting walk-in closets, redesigning open-concept kitchens with soft-close cabinets and quartz countertops, and adding a new HVAC system with mini splits in every unit. The units are individually metered for gas and electricity.
“This asset is truly a turnkey property, having undergone a full interior and exterior renovation, including the extensive renovation of all nine units,” noted Fielder. “Additionally, our preliminary research suggests the potential of building two one-bedroom, one-bath accessory dwelling units (ADUs) on the property to achieve a proforma cap rate of 8.22%, up from the closing cap rate of 6.32%.”
Fielder, reflecting on the multifamily market, adds, “Given the current market conditions, now is an excellent time for multifamily investors to acquire a well-located property such as the Wellington Avenue apartment community. With strong demand for rental housing, attractive cap rates, and the potential to add more units (ADUs), fully renovated properties like this one offer a compelling investment opportunity. Additionally, the central location and proximity to sought-after amenities make these properties highly desirable for tenants, ensuring steady occupancy and long-term value.”
Santa Ana boasts a booming retail environment, with some of the largest credit tenants in the nation and highly visited malls. The MainPlace Mall, conveniently located off Interstate-5, SR-55, and SR-22 freeways, is soon to be upgraded to a three-story super-regional shopping center, featuring over one million square feet of retail, dining, living, and entertainment. The Historic Downtown Santa Ana area is focused on joining together culture and community, home to a diverse collection of unique shops, premier restaurants, breweries, and art galleries.
Santa Ana is also home to major attractions and amenities, such as the Santa Ana Zoo at Prentice Park, the world-renowned Bowers Museum, the Discovery Science Center, and is just minutes from Knott’s Berry Farm, Disneyland Resort and the Anaheim Convention Center. Other local attractions include numerous retail options on 4th Street, the Willowick Golf Course, and the Orange County Center for Contemporary Art (OCCCA). Additionally, the city is a major business and professional hub, housing corporate headquarters for several major companies and regional headquarters for others.
