A 1031-exchange investor has sold a coastal apartment building in Seal Beach, California,to a local investor for $6.025 million. Dan Blackwell and Priscilla Nee of CBRE represented the seller, while the buyer was represented by Colliers International.
“This was the first 10-plus-unit multifamily property to sell in Seal Beach in over nine years and evidence that coastal properties rarely trade in the Orange County market,”Blackwell says. “The asset received great investor interest, and through nine offers, we were able to drive value to reach a price above the seller’s expectation.”
Located at 134 1st Street, the 13-unit apartment property is directly across from Alamitos Bay, adjacent to an open field for unobstructed ocean views and steps from the beach. Tenants are also in proximity to Alamitos Bay Landing, Marine Stadium Park, Seal Beach Pier, Main Street and the new development at 2nd and Pacific Coast Highway, a shopping and dining complex set to open in 2019.
The apartment building is located on a corner lot and features a secured gated entry, balconies and patios, vaulted ceilings in some units, and floorplans that include two townhome layouts. First time on the market, this investment offers upside in potential rents and an opportunity to own a trophy asset in a prime Southern California location, according to Blackwell.
Additionally, the CBRE team was able to negotiate a flexible closing date to accommodate time for the seller to identify and remove contingencies on their upleg property in their 1031 exchange, Blackwell adds.
Multifamily development and rent growth across Orange County is projected to continue 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.