CBRE has facilitated the sale of two multifamily rental communities located on the same street near the major thoroughfare of Euclid Street and Katella Avenue in Garden Grove, California.

The transactions involved two buyers and sellers and encompassed a total of 14 units, with a combined value of $3.3 million.  

In the first transaction, CBRE’s Executive Vice President, Dan Blackwell and Senior Associate, Andrew Boukather, represented the buyer as well as the seller. The property, an eight-unit multifamily building at 10772 Palma Vista Avenue in Garden Grove realized a sale price of US $1.87 million, equating to US $233,125 per unit and US $383 per square foot. The buyer was a private investor from Los Angeles County and the seller was based in San Diego County.

Our marketing process generated multiple competitive offers through our investor network, and the procured buyer went non-contingent on day one. 

Built in 1961, the property sits on 0.22 acres with the location in close vicinity to employment, parks, schools, shopping, restaurants, and easy access to freeways. The two-story, 4,864-square-foot apartment building consists of all one-bedroom units.

Blackwell says: “Our marketing process generated multiple competitive offers through our investor network, and the procured buyer went non-contingent on day one. The investor who acquired the eight units at 10772 Palma Vista Avenuewas a repeat client with a track record of purchasing several assets within Orange County and Southern California.” 

Boukather adds, “The going-in cap rate on the eight-unit property exceeded 5.80- per cent on day-one cash flow. The seller had recently renovated six of the eight units, so the buyer plans to renovate the two remaining units, which is expected to yield a cap rate well above 6% once the property is fully stabilized.” 

In the second transaction, Blackwell and Boukather represented the buyer in the sale of a six-unit multifamily property located directly across the street at 10761 Palma Vista Avenue. The sale price was US $1.44 million, representing US $240,000 per unit and US $380 per square foot. The seller was a private investor based in Orange County, while the buyer was a repeat client from Newport Beach.

This was a value-add opportunity as current rents were 40 per cent below market

The six-unit multifamily property at 10761 Palma Vista Avenueis a two-story, 5,320-square-foot building built in 1961 on 0.23 acres. The apartment building features all one-bedroom units and includes amenities such as an onsite laundry room and covered carport parking.

“This was a value-add opportunity as current rents were 40 per cent below market,” Blackwell says. “The property’s strategic location near employment, parks, schools, shopping and freeways, combined with robust rental demand and projected growth, allowed the buyer an immediate opportunity to improve the gross potential income and increase property value through a well-executed renovation plan. 

“We expect that the buyer will stabilize the property and achieve close to a 6 per cent cap rate.”   

CBRE structured the debt for the buyer to best align with the buyer’s value-add business plan for 10761 Palma Vista Avenue. CBRE’s Senior Vice President Gianni Novo, based in the firm’s West Los Angeles office, procured competitive bridge financing for the client. 

“We closed escrow on both properties around the same time, working with two different sellers and buyers,” notes Blackwell. “We previously sold a triplex property to the buyer who purchased the six units at 10761 Palma Vista Avenue.”  

The properties are located in Northeast Garden Grove, close to popular attractions such as Disneyland Park, Disney California Adventure Park, the Anaheim Convention Center, Angel Stadium, Honda Center, Loara High School, and The Promenade Shopping Center. Residents benefit from convenient access to CVS, Food 4 Less, Lake Intermediate School, Stoddard Elementary School, Simmons Elementary School, and Anaheim Urgent Care.

Additionally, the properties enjoy excellent access to Interstate 5 and the 22 freeway, providing residents with easy connectivity to the broader Southern California region.