CBRE has arranged the sale of a mixed-use property comprising 12 residential apartment units and a street-front retail building in Costa Mesa, California.

Acquired by a local private investor for US $3.2 million, the transaction represented a selling price of US $425 per square foot (or US $246,154 per unit) as the property exchanged hands for the first time in over 30 years.

CBRE Executive Vice President Dan Blackwell and First Vice President Mike O’Neill represented the seller, a private Orange County, Calif.-based partnership. Blackwell and O’Neill also represented the buyer, an Orange County-based private investor, who has previously purchased five other multifamily properties working with Blackwell and O’Neill.

Located at 2027-29 Harbor Blvd. on a 0.41-acre lot, the mixed-use property features a total of four buildings encompassing 7,530 square feet. Three multifamily buildings provide 12 residences: eight studio units, two one-bedroom floorplans, and two two-bedroom floorplans. The property also includes convenient amenities such as open-space parking, a community laundry room, and storage lockers. Additionally, there is a 1,942-square-foot street-front commercial building, occupied by an auto trim business. The oldest building on the site dates back to 1949, with subsequent building additions made in 1952, 1954, and 1962. 

The property at 2027-29 Harbor Blvd. represented a rare opportunity to acquire street-front retail alongside residential units in the highly sought-after westside Costa Mesa

“The property at 2027-29 Harbor Blvd. represented a rare opportunity to acquire street-front retail alongside residential units in the highly sought-after westside Costa Mesa,” says Blackwell. “Moreover, it presented an excellent value-add investment prospect, with the potential to increase rents by over 40% through an interior and exterior renovation plan.”

O’Neill adds: “Our team arranged seller financing for four years at 5% interest-only.

“Costa Mesa remains a highly desirable market for multifamily investors, representing a flight-to-quality,” emphasized O’Neill. “Orange County, with its robust employment base and proximity to excellent beaches, world-class shopping centers, and top-notch entertainment venues, continues to attract strong buyer interest in its multifamily market, particularly in the coastal region.

“Despite the recent uptick in interest rates, rent growth across Orange County remains strong, prompting investors to seize value-add opportunities like the property at 2027-29 Harbor Blvd. in Costa Mesa.” 

With a ‘Walk Score’ of 86, the property benefits from its proximity to Triangle Square, Costa Mesa Courtyards and Mother’s Market & Kitchen. Costa Mesa, situated one mile from the Pacific Coast in the heart of Orange County, is home to South Coast Plaza, one of the nation’s largest shopping centers, and the world-class Segerstrom Center for the Arts and South Coast Repertory theatre. Furthermore, the city serves as the capital of the action sports industry and the headquarters for prominent companies such as Hurley International, Volcom, RVCA and Vans. 

The recent sale of 2027-29 Harbor Blvd., is CBRE’s seventh successful multifamily property sale in the city of Costa Mesa in the past 18 months.