News Summary
Orange County is witnessing a significant increase in multifamily property transactions, with several small apartment buildings exchanging ownership and new developments on the rise. High-profile sales include the Victoria Street Apartments and Imperial Apartments, reflecting the ongoing demand for rental housing. Additionally, developments like a new Engineering hub at Cal State Fullerton and plans for new apartments in Discovery Park are further addressing the area’s housing needs and enhancing community resources.
Orange County Sees Surge in Multifamily Property Transactions and New Developments
Orange County has recently experienced a notable increase in the transactions of multifamily properties, with several small apartment buildings changing ownership and new developments on the horizon. This trend reflects ongoing demand for rental housing in the region, driven by both investors and prospective tenants.
The highest-priced transaction occurred on May 16 in Costa Mesa, where the Victoria Street Apartments sold for $8.6 million, translating to $661,538 per unit. The complex, located at 553 Victoria St., features eight two-bedroom cottages and five three-bedroom townhomes, all built in 1991. This sale was represented by a local realty company.
Additionally, the Imperial Apartments, a 51-unit complex located at 1722 North Bush St. in Santa Ana, was sold for $15 million on June 4, bringing the per-unit cost to $294,118. This transaction was facilitated through a 1031 exchange, managed by a leading investment firm that represented both the sellers and the buyers, Apartment Ventures. The complex offers a variety of floor plans, including studio, one-bedroom, and two-bedroom units, alongside recent upgrades including new paint, vinyl floors, granite countertops, and custom cabinetry. Amenities further enhance the appeal of the property, with on-site laundry, outdoor patios, and a multi-story parking garage.
Fullerton also witnessed a significant sale with a nine-unit apartment complex on Quartz Lane selling for $4.1 million on June 13, marking the highest price-per-unit sale in the city this year at $455,555
Further transactions include a seven-unit apartment building in Anaheim, which sold for $2,264,000 on May 12, and a retail property on Balboa Island, which sold for a record price of $2.2 million—equating to $1,692 per square foot.
New Developments on the Horizon
Amidst these transactions, various developments are underway to accommodate the growing population and housing demands in Orange County. C.W. Driver Cos. has commenced construction on a $54 million Engineering and Computer Science innovation hub at Cal State Fullerton. Strategically located at 800 N. State College Blvd., this 45,000-square-foot facility will cater to engineers, computer scientists, and technology students, featuring labs, classrooms, student lounges, wellness areas, makerspaces, and equipment rooms. The hub broke ground on June 4, with an expected completion date set for spring 2027.
The Irvine Company is also responding to regional housing demands by planning to build 1,858 apartments in the Discovery Park. This project, which includes a mixture of studio, one-bedroom, and two-bedroom apartments, has received enthusiastic support from the Irvine Planning Commission and is currently awaiting City Council approval. In addition to residential units, the company plans to develop a 2.6-acre park and 5,000 square feet of retail space.
Moreover, the Irvine Company secured a zoning change that allows for the potential development of up to 2,500 new residential units near the University of California, Irvine campus. Their ongoing developments also encompass 1,261 residences near The Market Place, an open-air shopping center that spans the Irvine and Tustin borders.
Conclusion
The surge in multifamily property transactions and development activities in Orange County illustrates a robust market driven by an increasing demand for housing solutions. With various initiatives from private sectors and educational institutions, the region is evolving to meet the residential and commercial needs of its growing population.
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Additional Resources
- OC Register: Costa Mesa Apartments Sell for $8.6M
- Wikipedia: Real Estate
- Commercial Observer: Irvine Company Multifamily Development
- Google Search: Irvine Company Multifamily Development
- OC Business Journal: Irvine Co Seeks to Add 1,858 Apartments
- Google Scholar: Orange County Housing Market
- NBC Los Angeles: Vacant Malls Repurposed for Housing
- Encyclopedia Britannica: Housing Developments
- KTLA: Person of Interest Questioned in OC Apartments Death
- Google News: Orange County Real Estate News
