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11/05/18
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A newly constructed, 12-unit apartment building in the City of Orange was purchased by a 1031 exchange investor for $4.5 mil, or $375k/unit. The property, Encore at Hewes, a luxury senior apartment community (55+), was built in 2017 by RC Hobbs Company, the seller.
The property is located at 130 S. Hewes St, near the affluent neighborhood of Orange Foothills. It features all one-bedroom/one-bathroom + den floor plans.
CBRE’s Dan Blackwell represented the buyer in the transaction. Blackwell also represented the seller, who had repurposed the land to allow for the construction of the brand-new building.
“The buyer was looking to acquire a property in Orange, specifically a newer asset with less deferred maintenance after selling an apartment building in Tustin, California, as part of a 1031-exchange,” said Blackwell. “Newly developed buildings are highly sought after in today’s market, especially with exchange buyers.”
Investor demand for multifamily assets has been strong. Rent growth across Orange County has continued due to the shortage of available inventory, high home prices and the influx of Millennials into the renter pool, according to CBRE research. Orange County’s population is set to grow from 3.2 million today to 3.5 million by 2040, which is likely to continue to drive demand for apartments.
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