News Summary
Costa Mesa achieves a milestone in real estate with a $5.5 million sale of a multifamily property, setting a record of $1.1 million per unit. The property, a five-unit complex on Knox St., reflects growing demand in the rental market. The transaction underscores robust activity in the region, with significant potential for rental growth and rising property values.
Costa Mesa has set a remarkable milestone in the real estate market with the sale of a multifamily property that went for $5.5 million. The transaction, which occurred on September 5, translates to a record-breaking $1.1 million per unit for the city, highlighting the escalating demand for residential rental properties in the area.
The property, located at 207 Knox St., consists of a five-unit rental complex that was constructed in 1978. It boasts a combined rentable area of 8,169 square feet and rests on nearly a third of an acre, situated conveniently just a block away from Newport Avenue. The property was originally listed at $5,985,000 and was on the market for 164 days before its sale. It generated an annual net operating income of $202,793.
The transaction was facilitated by the Leeson Group at Marcus & Millichap, who represented both the buyer and the seller, both of whom remain unidentified. This sale has been noted as the highest price per unit recorded in Costa Mesa for any multifamily property containing more than five units, as stated by a representative from Marcus & Millichap.
Among the noteworthy units in the complex is Apartment D, which is a three-bedroom, two-bathroom unit available for a rental price of $5,250 per month. This unit features a spacious living room complete with a fireplace, a half-bath, a separate dining area, in-unit laundry, and an attached garage. Recent renovations to the unit include wood-style plank flooring, quartz countertops, stainless steel appliances, and skylights, contributing to its appeal.
The complex’s modernized design aims to provide a condo-like living experience, which has been emphasized by experts noting the significant potential for rental growth in the upcoming years.
Market Context
This record sale in Costa Mesa comes amid a series of other notable real estate transactions in the region. Just two days prior, on September 3, a 36-unit apartment property known as Garden Walk Apartments in Garden Grove was sold for $12,774,650, equivalent to $354,851 per unit. This property had not changed hands in over 30 years and is scheduled for renovations by the new owner. It includes a mix of one and two-bedroom units, along with amenities such as gated access, a swimming pool, and on-site laundry facilities.
Additionally, the CBRE organization announced the sale of a 22-unit multifamily property in Eastside Costa Mesa for $9.57 million. This transaction marked the first time the property was on the market in over 25 years, achieving a price of $434,845 per unit and a cap rate of 5.10%. The property includes a variety of one and two-bedroom units, central courtyards, garages, and surface parking spaces.
Recent Architectural Achievements
Recognizing the growing demands of the community, the architectural firm MVE + Partners received commendations from the American Institute of Architects OC for two significant Orange County projects. This includes development related to OCVibe, which aims to feature 2,250 residential units in Anaheim, and the Rafferty – Santa Ana project, encompassing 218 units and retail space in downtown Santa Ana.
The real estate market in Costa Mesa and the surrounding areas continues to see robust activity, reflective of broader trends in residential housing demand and rental opportunities. The emergence of high-value sales, such as the recent transactions, suggests a bright outlook for investment in multifunctional residential properties in this vibrant Southern California locale.
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Additional Resources
- OC Register: Costa Mesa Real Estate News
- Wikipedia: Costa Mesa
- Yield Pro: Eastside Costa Mesa
- Google Search: Costa Mesa real estate
- Connect CRE: Costa Mesa Apartments
- Google Scholar: Costa Mesa real estate
- OC Business Journal: Santa Ana Rentals
- Encyclopedia Britannica: Costa Mesa
- Multifamily Dive: December Deals 2023
- Google News: Costa Mesa multifamily properties
Author: STAFF HERE COSTA MESA WRITER
COSTA MESA STAFF WRITER The COSTA MESA STAFF WRITER represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the OC Fair, Concerts in the Park, and Fish Fry. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Boys & Girls Clubs of Central Orange Coast, plus leading businesses in retail, fashion, and technology that power the local economy such as Vans, Experian, and South Coast Plaza. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
