CBRE announced the sale of Laguna Terrace, a 12-unit multifamily property at 2200 S. Coast Highway in Laguna Beach, California to a private investor. The property sold for $5.1 million, equating to $1,093 per square foot and $425,000 per unit.
CBRE’s Executive Vice President Dan Blackwell, First Vice President Mike O’Neill, and Associate Jack O’Connor represented both the seller, a private investor from Laguna Beach, and the buyer, a repeat all-cash investor from South Orange County. Both parties were involved in a 1031 exchange.
“Laguna Terrace went into escrow just two days after hitting the market, as our team swiftly matched a motivated buyer seeking a unique coastal asset to complete their 1031 exchange with a seller ready to move quickly and accept the all-cash, ‘as is’ offer,” said Blackwell.
O’Neill added, “From the initial seller outreach to the close of escrow, the entire process took just 51 days.”
“The buyer had sold a short-term rental in another market and wanted us to find a prime Coastal Orange County asset to complete his 1031 exchange,” said O’Connor. “Laguna Terrace sits directly on the Coast Highway, across the street from some of Laguna’s most beautiful coves, Moss Point and Woods Cove, and within walking distance to beaches, retail, restaurants, and more.”
“We have worked with this seller throughout the ownership cycle and provided guidance on various services before listing the property,” O’Neill said. This marks the first time the property has been offered for sale in over 22 years.
“The buyer has the potential to increase rental income through renovations, which could raise the cap rate from 4.12% to 5.49%,” O’Connor noted. “With all tenants on month-to-month leases, the buyer retains flexibility.”
According to O’Connor, the property’s R3 zoning allows the buyer to explore additional development and remodeling options.
Laguna Beach, a seaside resort city in South Orange County, is known for its mild Mediterranean climate, scenic beaches, and thriving art scene. The city boasts over seven miles of coastline with natural attractions like caves, tide pools, and some of Southern California’s best dive spots. Popular annual events such as the Pageant of the Masters and Sawdust Art Festival draw nearly 6.3 million visitors each year.
The city also contains over 20,000 acres of protected wilderness, offering ample opportunities for outdoor activities such as hiking, mountain biking, and marine exploration. With a population of over 23,000, Laguna Beach spans 8.8 square miles and is located 55 miles southeast of Los Angeles and 67 miles northwest of San Diego. The area has an average household income of $206,360, with more than 38% of households earning above $225,000 annually.
“The Laguna Beach rental market remains one of the most sought-after in California, driven by high rental demand, limited inventory, and proximity to beaches, restaurants, galleries, and entertainment,” O’Neill said, emphasizing the appeal for multifamily investors. “Our team has a longstanding history of successful transactions in Laguna Beach, which underscores our deep understanding and expertise in this vibrant market.”
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.
