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10/19/18
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A 1031 exchange investor paid $9.55 mil for two multifamily properties totaling 34 units in Tustin. The acquisitions consisted of a 30-unit property at 15962-16002 S. Myrtle Ave, which sold for $8.25 mil ($275k/unit), and four apartment units at 14502 Del Amo Avenue that traded for $1.3 mil ($325k/unit).
CBRE’s Dan Blackwell represented the represented the buyer and the seller in the transaction. According to Blackwell, the seller’s motivation was to exchange into a newer property with less deferred maintenance that would reset their depreciation schedule.
“We previously facilitated the buyer’s sale of a nine-unit property in Fullerton, which was the down-leg of his 1031-exchange,” said Blackwell. “Each step was contingent upon the other in order to successfully complete the transactions for all parties involved.”
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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