Demonstrating the continuing strength of the Orange County apartment market, a team of multi-family brokers from Colliers International has negotiated and managed the sometimes frenzied sale of a four-building investment portfolio that attracted dozens of bids from multiple potential investors in transactions totaling $14.2 million.
The four investment properties – one in Costa Mesa and three in Huntington Beach – were sold separately by the Colliers’ multi-family brokerage team of Senior Vice President Pat Swanson and Senior Investment Associate Brett Bayless, who both are based in the brokerage firm’s Irvine, Calif. offices. They represented the seller, a private family.
“Not only were we receiving and managing the bidding process on the four properties right up to the deadline, we put our seller in the absolute best position any seller can be in with multiple backup offers from prospective investors whom we had pre-qualified,” said Swanson. “This sale also demonstrates, in tangible terms, the confidence investors have in the multi-family investment market as we head into a new year. We were able to capitalize on the strong demand for quality investment properties, and the lack of supply by implementing a comprehensive marketing plan that targeted both principal investors and the brokerage community. Ultimately, full cooperation lead to a bidding war and achieved the Seller the best market price and terms.
The sales included 7912 and 7922 Aldrich Drive in Huntington Beach, a conveniently located near Bella Terra shopping center. Built in 1978, the 16-unit property includes four one-bedroom apartments, and 12 two-bedroom apartments. The property spans nearly 14,500 square feet of rental space. Swanson and Bayless had more than 10 offers, and sold the property for over the asking price at $5,350,000.
The second sale was 7891 and 7901 Stark Drive in Huntington Beach, also located near the popular Bella Terra shopping center. Built in 1978, the 14-unit complex is 12,600 square feet and, like the other properties, sold for more than the asking price, closing escrow at $4,460,000. The complex includes eight one-bedroom units, five two-bedroom townhomes, and one three-bedroom townhome. Swanson and Bayless also had more than 10 offers on this property.
The third sale in the portfolio was comprised of 16681 Island Circle in Huntington Beach, near Huntington Harbor. The four-unit property has 4,162 square feet, including three, three-bedroom apartments and one two-bedroom apartment. This property also sold above its original asking price, at $1,625,000. The buyers were private investors.
The fourth sale in the portfolio was 369 W. Bay Street in Costa Mesa, offering nine one-bedroom units on nearly 18 acres. Swanson and Bayless represented the buyer, s private investor. Built in 1976, the property had more than 10 prospective buyers, and sold for $2,760,000, substantially higher than the asking price.
Recent numbers show an Orange County average annual rent growth of 6.3%, and, despite having about 10,800 new apartments under construction in Orange County, rents are at an all-time high.
“Southern California, and Orange County in particular, continue to be among the strongest rental markets in the country, so each of these properties represented terrific investment opportunities,” added Bayless. “When you can inform your selling client that you have multiple offers in hand, it changes the whole dynamic of the sales process. It puts the client in the driver’s seat and that’s what we always strive to do.”