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BRE announced the simultaneous sale of two multifamily properties in Santa Ana, California, representing both buyers and sellers from Orange County. The combined sales price was $2,825,000 for 10 units, with all-cash transactions demonstrating strong demand for investment opportunities in the area.
The property at 3720 South Marine Street, a Covington-style fourplex built in 1968, sold for $1,575,000, or $393,750 per unit and $362 per square foot. CBRE's Dan Blackwell and Amanda Fielder represented both the buyer and seller in this transaction, which closed after just 13 days on the market with a 40-day escrow period.
The four-unit complex features two- and three-bedroom floor plans averaging 1,088 square feet, with new flooring in two units. The property includes four garage spaces, two open areas, and individual metering for gas and electricity.
"Our exclusive marketing process generated multiple tours of the property, securing an all-cash buyer for this highly sought-after Covington-style fourplex," said Blackwell. Fielder noted that the in-place rents are 20% below market rate, offering an opportunity to increase the cap rate from 3.52% to 4.76%.
The six-unit property at 411-413 East Chestnut Avenue sold for $1,250,000, representing $349 per square foot and $208,333 per unit. CBRE's Blackwell and Fielder represented the repeat seller and all-cash buyer in this transaction, which closed after 22 days on the market.
Built in 1958, the single-story complex offers one- and two-bedroom floor plans with a total of 3,582 square feet of rentable space. The property features seven open parking spaces and is individually metered for gas and electricity.
"The property offers the buyer an opportunity to increase rental rates by 25% to achieve a cap rate of 6.57% from the closing cap rate of 4.50%," said Blackwell. Fielder noted that the East Chestnut Avenue property is located in an opportunity zone, with over 1.4 million jobs within commuting distance and a strong rental market.
Santa Ana is a highly populated city with a diverse economy, boasting a booming retail environment and major business hubs. The city is home to Santa Ana College and features a range of amenities, including the MainPlace Mall and Historic Downtown Santa Ana area.
CBRE Group, Inc. is the world's largest commercial real estate services and investment firm, serving clients in over 100 countries with an integrated suite of services.
