Santa Ana Apartment Asset Sells in $74 Mil Deal

A 406-unit apartment complex in Santa Ana was purchased by Chicago-based Waterton Associates in a $74.3 mil transaction ($183k/unit) that closed on November 7th. The property, Villas at Tustin, is located on the west side of North Tustin Ave. It was sold by Acacia Capital, out of San Mateo.

Built in 1971, the property is just minutes from the 806-acre Platinum Triangle redevelopment area, which is entitled for 7 msf of office and retail and is expected to bring 26,000 new jobs to the submarket.

"While the seller continued the renovation of interiors during their ownership, the buyer, Waterton Associates, envisioned the benefit of further interior renovation and exterior upgrades, given the recent success of other nearby projects like Creekside Village," commented Joe Leon, the Hendricks & Partners brokerage team leader on this assignment.

Leon went on to say that "Washer and dryer appliances, alone, could add as much as $75 per unit per month in new Net Operating Income and the buyer plans to incorporate this amenity into their finished product, over the next couple of years.”

Both the buyer and seller were represented by Joe Leon, David Casper and Bruce Furniss of Hendricks & Partners, who point out that multifamily deals of this size in Orange County happen fairly infrequently.

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source: rentv.com