A 1031-exchange buyer has purchased Francia Apartments, a 20-unit property located at 1410 French Street in Santa Ana, from an undisclosed seller for approximately $3.9 million. The buyer already owned a property on the same street, which helped close the sale, according to CBRE’s Dan Blackwell.
SoCal Real Estate was unable to reach CBRE before deadline to find out more about the identity of the seller.
Blackwell, Mike O’Neill, and Matt Daspin represented the buyer and the seller in the transaction.“Though the property was previously expired and marketed by another firm for more than 150 days, we knew we could close a sale with this 1031-exchange buyer who already owned on the same street,” says Blackwell.
Francia Apartments is in walking distance to Downtown Santa Ana and features mostly studio apartments as well as four one-bedroom units. Built in 1977, the seller had increased the value of the site by about 45 percent since purchasing it three years ago, by increasing rents.
“This deal gave the seller the chance to realize substantial gains since investing into this property while providing the buyer with the opportunity to exchange into a well-performing and income-producing asset,” Blackwell adds.
Santa Ana is one of Orange County’s strongest rental markets. As the second most populous city in the county, it boasts a strong commercial presence, which supports a high rental demand. Overall, the Orange County multifamily market has had one of the lowest vacancy rates in the country, according to CBRE research.