Three, four-unit apartment properties in Orange County sold for a combined $5.48 million to three separate buyers in just 10 days.
Their eye-popping prices, brokered by CBRE in Newport Beach, were yet another signal of the housing market’s heated interest from buyers.
“The fourplex multifamily market is extremely active and competitive right now and, due to a low inventory of quality assets, buyers are competing to get their hands on good opportunities,” said Amanda Fielder at CBRE.
During the pandemic, the commercial buying frenzy focused on large apartment complexes bought by real estate trusts and investment firms. This year, it’s all about smaller units as family trusts swap properties in 1031 exchanges. Just a week ago, we reported that three small apartment buildings sold for a combined $18 million. In early June, two north Orange County apartment buildings sold for a combined $15 million.
Here’s a look at the trio of property sales handled by CBRE:
Orange: A 57-year-old, four-unit property at 609 S. Cypress St. sold for $1.78 million. CBRE noted the price was $75,000 over the asking and amounted to $443,750 per unit. The property is not far from Holy Family Catholic Church and an easy bike ride to Old Towne and nearby Chapman University.
“We generated six competitive offers at or above list price and procured an all-cash, 1031 exchange buyer who went under contract non-contingent within one week of our team marketing the property for sale,” said Dan Blackwell, executive price president at CBRE. The sale closed in 17 days, he said.
Santa Ana: The second four-unit property sold for the asking price of $1.7 million. The 54-year-old property at 405 Nobel Ave. snared $425,000 per unit. It was the first time the property had been listed for sale in 20 years, according to CBRE’s Amanda Fielder.
San Clemente: The four-unit property at 143 W. Canada sold for $2 million, or $500,000 per unit. The property was built in 1972 and is a few blocks from the beach.
Key to investor interest is the potential to elevate rents at the properties.
“All three properties had in-place rents that were 25% to 33% below-market rent, which was an attractive value-add opportunity for the investors,” Blackwell said. “A fourplex offers a lower-entry price point for investors looking to acquire multifamily properties, and all three of these properties were well-located in a desirable infill market that was attractive to investors.”
5.11 gets an HQ makeover
The design team at Hendy in Newport Beach has remade 5.11 Tactical’s Costa Mesa headquarters into a “unified” workplace that incorporates much of the gear maker’s rugged apparel and equipment.
5.11, founded 31 years ago in Modesto, makes tactical gear for outdoor enthusiasts and military and public safety personnel.
Reps at Hendy said the firm’s mission was to convert the former workspace from a modular configuration into a cultural hub centered on 5.11’s employees.
“With our new headquarters, we challenged Hendy to design a cultural destination that embodies 5.11 Tactical’s distinct spirit and unites our team under one roof both physically and emotionally around our shared mission to Always Be Ready,” said 5.11’s CEO Francisco J. Morales. “The final environment is everything we imagined and more.”
Designers made good use of materials in 5.11’s product line, including twisting straps into sculptural walls and ceiling elements, and repurposing hexagon-patterned panels used in the company’s backpacks into the overhead lighting. A giant faux boulder was worked into the lobby space and a canyon effect was built into a hallway.
RiverRock acquired by Dallas firm
Irvine-based RiverRock Real Estate Group, a 20-year-old property and asset management firm, has been acquired by Lincoln Property Co. in Dallas.
Terms of the deal were not disclosed by either firm. Lincoln said the acquisition adds more than 50 million square feet to its property management portfolio.
RiverRock’s founding partner John Combs will join Lincoln’s executive team, leading operations and growth on the West Coast.
“I founded RiverRock in 2003 to provide a better solution for clients, embracing the most successful ideas in customer service, technology, training, and pricing,” Combs said in a statement.
The deal to buy RiverRock comes as Lincoln establishes a new line of leadership succession. David Binswanger and Clay Duvall will lead the company as co-chief executives. Founded in 1965, the company has 35 offices worldwide.
Blood drive is Aug. 18
The Stephanie Young Group, a sales team with the Newport Beach office of Coldwell Banker Realty, is hosting an American Red Cross blood drive from 10:30 a.m. to 5 p.m. Friday, Aug. 18 in Irvine.
Blood donations will be administered by the Red Cross Bus at Village Square Park at 130 Outwest.
A photo ID is required to donate.
Appointments can be scheduled at RedCrossBlood.org with the sponsor code SYG or over the phone at 1-800-733-2767. To check eligibility to donate blood, call the Red Cross Donor Support Center at 1-866-236-3276.
The business briefs are compiled and edited by Business Editor Samantha Gowen. Submit items to sgowen@scng.com. High-resolution images also can be submitted. Allow at least one week for publication. Items are edited for length and clarity.
