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11/19/24
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Two six-unit multifamily properties in San Clemente were purchased by private investors in separate deals that totaled $4.82 mil.
114 Avenida Aragon, San Clemente |
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In one of the transactions, a Newport Beach-based investor paid $2.22 mil for a six-unit ($370k/unit) property at 114 Avenida Aragon. This was the first time the property had been on the market in approximately 50 years.
The property at 114 Avenida Aragon features a two-story building constructed in 1958 with a total of 4k sf of rentable space on a 7.8k sf corner lot. The unit mix includes four two-bedroom and two one-bedroom apartments.
Additional amenities include ocean views from select units, community laundry facilities, and individually metered gas and electric utilities. The property offers seven open parking spaces, onsite storage for added income potential, and well-maintained landscaping. Recent capital improvements include roof resurfacing in 2022, updated exterior staircases, a resurfaced and restriped parking lot, and a completed SB 721 deck and balcony inspection.
Situated in a highly desirable coastal location with a Walk Score of 88, the property is only 0.4 miles from the beach and 0.7 miles from Downtown San Clemente, providing tenants easy access to local parks, schools, restaurants, and entertainment.
CBRE’s Executive Vice President Dan Blackwell, Senior Vice President Mike O’Neill, and Associates Jack O’Connor and Amanda Fielder represented the seller in the deal.
Fielder highlighted the investment’s value-add potential: “Current rents are nearly 30% below market levels. With recent exterior improvements in place, the new owner has the opportunity to make additional cosmetic improvements and interior upgrades to increase rents, potentially increasing the cap rate from the current 4.24% to a projected 6.08%.”
In the second transaction, an OC investor paid $2.6 mil for a six-unit ($433.3k/unit) asset located at 244-248 W. Escalones in San Clemente. Built in 1965, the three-building property offers a total of 5.1k sf of rentable space on a 12.6k sf lot. The unit mix consists of one studio unit, three one-bedroom units, and one two-bedroom unit, in addition to a three-bedroom single-family residence that features a private patio with ocean views.
Four of the units have been recently renovated with updated flooring, kitchens, and bathrooms. Additional amenities include ocean views from select units and balconies, onsite laundry, seven garage parking spaces, well-maintained landscaping, and individually metered gas and electric utilities.
Located in a prime coastal area (Walk Score: 74), only 0.4 miles from San Clemente City Beach and 0.9 miles from Downtown San Clemente, the property offers the potential for further value creation. By adding an accessory dwelling unit (ADU), the buyer could increase the current cap rate from 5.35% to 5.88%.
Blackwell, O’Neill, O’Connor, and Fielder represented the seller in the San Diego-based seller in the transaction.
San Clemente is a picturesque beach town in southern Orange County, bordering San Diego County, with a population of over 64,000 residents and an average household income projected to rise to $206,829 by 2028. Known for its scenic ocean, hills, and mountain views, as well as its Spanish Colonial architecture, San Clemente’s mild climate and natural beauty attract more than two million visitors annually.
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