CBRE has brokered the sale of two multifamily apartment communities with 53 units in Anaheim, California to a private 1031 exchange buyer for US $16.77.
“Our client wanted to trade their existing 20-unit, 1960s apartment property, Pearson Gardens, for a newer property with more units, a better location, and increased cash flow,” explains Dan Blackwell, Executive Vice President at CBRE. “We assisted our client in identifying and acquiring a suitable upleg property that met their criteria before facilitating the sale of their existing downleg property. This resulted in their acquisition of a late 1980s apartment complex, Aria Apartments, increasing their total units to 33, with more cash flow and a better, more desirable Anaheim neighborhood. Our client successfully closed escrow on their upleg property less than three weeks after the closing of their downleg property.”
In the client’s upleg transaction, Blackwell and CBRE Associate Amanda Fielder represented the Orange County-based 1031-exchange buyer in the acquisition of the 33-unit property, Aria Apartments at 2910 W. Ball Road in Anaheim, for over $10.97 million. The purchase price represents US $332,443 per unit and US $442 per square foot. Blackwell and Fielder also represented the Texas-based seller, a repeat client, and successfully generated multiple qualified offers for the sale of Aria Apartments.
Aria Apartments, built in 1986, consists of six two-story buildings totaling 24,796 square feet of rentable space on 1.19 acres. The property features a mix of one- and two-bedroom floor plans and is individually metered for gas and electricity. Community features include an onsite laundry facility, 59 covered parking spaces, attractive landscaping, secured gated access, and a common area patio with a BBQ. The seller recently invested over US $600,000 in interior and exterior renovations. The community is located near the major thoroughfares of Ball Road and Beach Boulevard, within walking distance of dining and retail, and just 4.3 miles from Disneyland Resorts.
Additionally, CBRE’s Blackwell and Fielder represented the exchange buyer in the sale of their 20-unit downleg property, Pearson Gardens, located at 314 E. Pearson Avenue in Anaheim. The CBRE Multifamily SoCal Team’s marketing process generated multiple tours and competitive offers through the team’s investor network, ultimately leading to a sale price of US $5.8 million, representing US $290,000 per unit and US $372 per square foot. Blackwell, Fielder, along with CBRE Vice President Sean Farag, also represented the South Orange County-based buyer, who sold single-family homes to exchange into the multifamily property to increase cash flow.
Pearson Gardens, built in 1962, consists of a two-story, 15,600-square-foot building on 0.59 acres at 314 E. Pearson Avenue. The property features a mix of one- and two-bedroom floor plans and is individually metered for gas and electricity. Community features include gated walk-in entry, central courtyard and BBQ area, well-maintained landscaping, 27 parking spaces, and an onsite laundry facility. The seller recently completed interior and exterior renovations. The property is located near Ponderosa Park and Anaheim Garden Walk and is close to Disneyland Resorts (2.0 miles).
“These sales were a true team effort and a great example of how our team can effectively facilitate and execute a 1031 exchange for investors from start to finish,” says Blackwell. “We know who the active 1031-exchange buyers, investors and sellers are in the marketplace, enabling us to quickly connect the best parties to achieve each buyer’s and seller’s exchange objectives.”
Fielder adds: “We knew the owner of the Pearson Gardens property was interested in selling after 11 years of ownership and two unsuccessful attempts at listing the property with other brokerage firms. Additionally, we had a relationship with the owner of the West Ball Road property, having sold it to them in 2022, which allowed us to successfully match these buyers and sellers.”
“Orange County multifamily assets continue to attract buyers seeking a flight to quality, and we expect this investor demand to persist into the near future,” Blackwell adds. “These two sales mark the CBRE Multifamily SoCal Team’s 95th and 96th transaction in the city of Anaheim.”
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