CBRE announced the sale of a seven-unit multifamily property in downtown Laguna Beach, Calif., to a private investor for $5.89 million. The selling price equates to $1,275 per square foot and $841,429 per unit, making it one of the highest price per unit sales in the Laguna Beach multifamily market over the past six months, according to CBRE.
CBRE’s Executive Vice President Dan Blackwell and First Vice President Mike O’Neill represented the Northern San Diego County-based seller, a repeat client. The buyer was based in Laguna Beach. Both the buyer and seller were in a 1031 exchange.
“Our exclusive marketing process generated multiple competitive offers for this prime downtown Laguna Beach turnkey property, positioned only a three-minute walk from Main Beach, and successfully closed escrow at 99% of the asking price after only two days of marketing,” O’Neill noted. “This transaction marks the second time our team has facilitated the sale of the property.”
Additionally, though the team did not represent the buyer, the team was able to assist the buyer in securing lender financing.
The transaction encompassed two adjacent parcels totaling 9,980 square feet of land in the heart of Laguna Beach. These parcels, located at 363-397 Park Avenue and 502 and 504 Goff Street, feature a Walk Score of 97 (a “Walker’s Paradise”) just steps from downtown and the water. The strategic positioning near restaurants, grocery stores, retail shops, parks, schools and entertainment further increases their desirability, noted O’Neill.
The property at 363-97 Park Avenue comprises five one- and two-bedroom single-family detached cottages, each featuring a fireplace, individual water heater and laundry hookup.
The property at 502 and 504 Goff Street consists of a duplex with a three-bedroom penthouse unit offering ocean views, along with a studio unit. The duplex also includes a non-conforming studio unit. Additionally, the Goff Street property includes two garage spaces.
O’Neill notes, “The buyer has an opportunity to bring the rents to market level to achieve a cap rate of 3.93%. Moreover, the buyer stands to benefit from income generated by a non-conforming studio unit situated in the duplex building.”
O’Neill highlights that both the five single-family units on Park Avenue and the three-bedroom Penthouse unit in the Goff Street duplex recently underwent interior renovations and received new landscaping, enhancing their overall appeal and rental potential.
“The Laguna Beach rental market is one of the most coveted rental markets in California due to its strong rental demand, limited inventory and proximity to the beach, restaurants, art galleries, retail shops, cultural activities and entertainment,” said Blackwell, emphasizing the appeal for multifamily investors.
The sale of the downtown Laguna Beach property marks the CBRE Multifamily SoCal Team’s 24th closing in Laguna Beach.
Laguna Beach is a seaside resort city located along the beautiful South Orange County coastline. It is renowned for its mild year-round Mediterranean climate, scenic beaches and vibrant art community. With over seven miles of distinctive coastline, Laguna offers a wealth of natural wonders, including caves, tide pools, ocean-side bluffs. Some of the top diving spots known in Southern California are found along the shores of Laguna Beach.
Home to events like the Pageant of the Masters, the Festival of the Arts, the Sawdust Arts Festival, Laguna Beach attracts nearly 6.3 million visitors annually. With more than 20,000 acres of protected wilderness, the city offers endless opportunities for outdoor activities, including mountain biking, hiking and exploring marine sanctuaries.
Spanning 8.8 square miles, Laguna Beach is home to over 22,000 residents and is conveniently located just 55 miles southeast of Los Angeles, 67 miles northwest of San Diego, offering easy access to all that Southern California has to offer.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has approximately 130,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com
