
CBRE has brokered the sale of four multifamily properties in the seaside city of Huntington Beach, California.
Involving 34 units, the separate transactions generated a combined sales price of US $17,925,000 or US $527,206 per unit – some 97 per cent of the asking price within an average listing-to-closing timeframe of 90 days for each property.
Built in the early 1970s, the properties which are located within three blocks of the beach have previously been put on the market.
CBRE Executive Vice President Dan Blackwell and First Vice President Mike O’Neill represented the seller, a local family trust, in all four transactions.
Property in the transaction:
212 15th Street: An eight-unit multifamily property with 6,538 rentable square feet sold for US $3,850,000. The property features a mix of one- and two-bedroom units, each with a private patio or balcony, situated across a double lot (totaling 7,638 square feet), two blocks from the beach. The units are individually metered for gas and electricity. There are a total of 12 parking spots – eight garage spaces and four open spaces.
According to Blackwell, the team generated seven offers for 212 15th Street and selected an Orange County-based buyer in a 1031 exchange.
O’Neill adds: “In addition to its prime location, the apartments at 212 15th Street also present a value-add opportunity.
“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 per cent, up from 3.56 per cent.”
With a strategic renovation plan, rents can be increased by approximately 36 per cent to meet current market levels, allowing the investor to realize untapped income potential…
125 16th Street: An 18-unit multifamily property sold for US $8,650,000. The apartment community features a mix of one-, two-, and three-bedroom units, some with ocean views and either their own private patio or balcony. With 15,809 rentable square feet, the multifamily complex is situated across six lots, totaling 17,625 square feet (0.40 acres). The apartment community features a courtyard, sun deck, laundry facilities, and an on-site manager. Blackwell and O’Neill represented both the buyer, a repeat client based in Fountain Valley, Calif., and the seller in this transaction.
“The property is situated close to Pacific City, restaurants, and shopping and is only 0.1 miles from beach access,” says O’Neill. “The multifamily community also offers a compelling value-add opportunity. With a strategic renovation plan, rents can be increased by approximately 36 per cent to meet current market levels, allowing the investor to realize untapped income potential and achieve a cap rate of 5.54 per cent, up from 3.55 per cent.”
317 & 321 22nd Street: Two neighboring fourplexes sold for a combined $5,425,000. Each of the two-story multifamily buildings offers 4,101 rentable square feet and sits on a 5,750-square-foot lot. Both fourplexes feature a mix of one-, two-, and three-bedroom floorplans with either a patio or balcony. Both communities feature six single-car garages, one open-space parking spot, and a laundry facility. A new roof was installed on both buildings in 2019.
“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 per cent of the asking price,” notes Blackwell. “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,” adds 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,” says 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 adds: “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.”