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2/04/26
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We’ve got two recent multifamily property sales with a combined price of $12.25 mil to report in La Habra, CA. The properties, totaling 38 units, were traded in separate deals with different buyers. Dan Blackwell and Amanda Fielder with CBRE represented the sellers in both transactions.
In one of the deals, an OC-based private investor paid $6.4 mil for an 18 unit ($355.5k/unit) multifamily community known as The Bungalows on Monte Vista, located at 141–247 South Monte Vista St in La Habra. The property closed in a 28 day escrow and traded at a cap rate of 5.74%, ranking as La Habra’s largest apartment transaction and highest cap rate sale in the past year, according to CBRE.
Built in 1964, the community consists entirely of single story, detached two bedroom cottages totaling approximately 13.5k sf across 1.33 acres on two parcels. Thirteen of the 18 units feature private enclosed yards. The seller was a private investor based in Pasadena.
The property is individually metered for gas and electricity, with each unit having its own hot water heater. Additional amenities include two on site laundry facilities, 18 single car garages and 28 open parking spaces. Recent improvements include replacement of all electrical sub panels, new roofs on select units and approximately $100k in hardscape and landscape upgrades.
“The Bungalows on Monte Vista stood out as the largest multifamily property available in La Habra at the time of sale, both in unit count and land size,” noted Fielder. “Its low density layout and strong fundamentals aligned well with current investor demand.”
In the other transaction, an OC-based investor purchased Villa Monaco, a 20 unit multifamily community located at 950 North Walnut St in La Habra, for $5.85 mil ($292k/unit). The property was built in 1968 and had been owned by the same family since construction.
Situated on a 0.61-acre lot with 21.8k sf, the three building, two story property features a mix of large two and three bedroom units, each with a fireplace. The community offers covered carports and open parking, landscaped common areas, on site laundry, wall A/C and heat in all units, and individually metered electricity with master metered gas.
The seller, a private family based in San Diego, completed the disposition as part of a generational transition. The buyer acquired the property as a value-add opportunity.
Villa Monaco presented a significant value add opportunity, with in place rents estimated to be more than 50% below market, according to Fielder. The property offered a current cap rate of 4.26% and a market rate cap rate of 8.37% achievable through interior upgrades, rent adjustments, and operational efficiencies. Recent capital improvements included a renovated communal deck with new furnishings and wrought iron accents, partial sewer line replacement, and a full remodel of the manager’s unit.
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