CBRE announced the sale of Legacy Portfolio, four multifamily properties in Huntington Beach, California in separate transactions, totaling 34 units.
The combined sales price for the Legacy Portfolio was $17,925,000, representing $527,206 per unit and 97% of the asking price. This marks the first time these properties, built in the early 1970s, have been available for sale.
Notably, all four properties are located within one to three blocks of the beach and CBRE achieved an impressive average listing-to-closing timeframe of 90 days for each property. CBRE Executive Vice President Dan Blackwell and First Vice President Mike O’Neill represented the seller, a local family trust, in all four transactions. The Legacy Portfolio properties include:
212 15th Street: An eight-unit multifamily property with 6,538 rentable square feet sold for $3,850,000.
According to Blackwell, the team generated seven offers for 212 15th Street and selected an Orange County-based buyer in a 1031 exchange.
“In addition to its prime location, the apartments at 212 15th Street also present a value-add opportunity,” O’Neill highlighted. “Through a renovation plan, current rents can be increased by approximately 28% to reach market levels, allowing the investor to capitalize on unrealized income potential and achieve a cap rate of 5.08%, up from 3.56%.”
125 16th Street: An 18-unit multifamily property sold for $8,650,000.
“The property is situated close to Pacific City, restaurants, and shopping and is only 0.1 miles from beach access,” O’Neill highlighted. “The multifamily community also offers a compelling value-add opportunity. With a strategic renovation plan, rents can be increased by approximately 36% to meet current market levels, allowing the investor to realize untapped income potential and achieve a cap rate of 5.54%, up from 3.55%.”
317 & 321 22nd Street: Two neighboring fourplexes sold for a combined $5,425,000.
“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.”
“These four individual sales represent a complex transaction to meet the needs of our seller-client, a local family trust,” said O’Neill. “Utilizing our investor and broker network, our team generated five to eight offers for each property, highlighting the strong coastal demand for well-located assets in Huntington Beach.”
“We are thrilled with the outcome of these four transactions,” said Blackwell. “Our ability to navigate the complexities of multiple transactions simultaneously showcases the strength and expertise of our team. We leveraged our extensive investor and broker networks to attract a diverse pool of buyers, ultimately maximizing value for our client.”
O’Neill added, “The long-standing relationship we built with the ownership group since 2017 was instrumental in understanding their goals and delivering exceptional results. Our consistent communication and market insights ensured a smooth and successful sale process.”
“The coastal Huntington Beach market continues to demonstrate robust demand for well-located multifamily assets,” said Blackwell. “These sales validate the strong interest from investors seeking quality properties in prime coastal locations.”
