CBRE has negotiated 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 US $5.1 million, equating to US $1,093 per square foot and US $425,000 per unit.
CBRE 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,” says Blackwell.
O’Neill adds, “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,” says 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 observes further. “This marks the first time the property has been offered for sale in over 22 years.”
Laguna Terrace is a distinctive property comprising four separate buildings across three adjacent lots, totaling 0.52 acres. The property, built in 1939, features 12 units — 10 studio units and two one-bedroom units — spread across four buildings. The total rentable space is 4,664 square feet. The buildings include a sixplex, triplex, duplex, and a single-family one-bedroom residence. Eight of the 12 units offer ocean views. Amenities include community laundry facilities, a community shower and bathroom, three separate storage rooms, and 14 parking spaces (eight garage and six open).
According to O’Connor, the property’s R3 zoning allows the buyer to explore additional development and remodeling options, who adds: “The buyer has the potential to increase rental income through renovations, which could raise the cap rate from 4.12% to 5.49 per cent. With all tenants on month-to-month leases, the buyer retains flexibility.”
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 US $225,000 annually.
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