CBRE announced the sale of Beachwood Apartments, an 18-unit multifamily community in Huntington Beach, Calif., to a private investor. The sale price of $8.65 million represents $480,556 per unit and $547 per square foot.
CBRE’s Executive Vice President Dan Blackwell and First Vice President Mike O’Neill represented both the buyer and the seller in the transaction. The seller was a repeat client based in Huntington Beach, and the buyer, also a repeat client, was based in Fountain Valley, Calif. Neither the buyer nor seller was in a 1031 exchange.
“Our marketing efforts generated nine competitive offers for Beachwood Apartments, which was listed for sale for the first time in more than 50 years,” Blackwell noted. “Investors were attracted to this generational buying opportunity due to its exceptional coastal location in the 100 block of downtown Huntington Beach, and its upside potential.”
Built in 1971 at 125 16th Street, Beachwood Apartments has a mix of one-, two-, and three-bedroom floor plans totaling 15,809 rentable square feet. It is situated across six lots totaling 17,625 square feet (0.40 acres). Select units have their own private patio or balcony, and some units offer ocean views. Each unit has its own individual water heater and is individually metered for gas and electricity. The apartment community features a courtyard, sun deck, laundry facilities, and an on-site manager. There are 24 garage spaces, and a new roof was installed in 2019.
“The property is situated close to Pacific City, restaurants and shopping, and is only 0.1 miles from beach access,” O’Neill highlighted. “Beachwood Apartments also presents a value-add opportunity. Through a renovation plan, current rents can be increased by approximately 36% to reach market levels, allowing the investor to capitalize on unrealized income potential and achieve a cap rate of 5.54%, up from 3.55%.”
Huntington Beach, a seaside city in western Orange County, is known worldwide for its 10-mile coastline, mild climate, and excellent surfing, earning it the nickname “Surf City.” The surf, sand, sun, and distinctive charm of Huntington Beach encapsulate the Californian lifestyle.
Located 35 miles south of Los Angeles and 90 miles north of San Diego, it is home to over 198,297 residents with an average household income of $154,467 (2023). Tourism and technology are leading industries in Huntington Beach, which hosts over 650 industrial businesses including Zodiac Aerospace, Quicksilver, and Cambro Manufacturing. With more than 11 million visitors annually, the city features one of the world’s largest recreational piers, public parks, riding stables, equestrian trails, a marina, a wildlife preserve, and an eight-mile coastal trail. The addition of the Pacific City retail hub, with its unique shops, upscale Equinox fitness facility and spa, and diverse dining options, enhances the city’s vibrant oceanfront lifestyle.
The sale of Beachwood Apartments marks the 15th Huntington Beach property sale by the CBRE Multifamily SoCal Team in the past 36 months. Most recently, the team facilitated the sale of eight units in downtown Huntington Beach. The two contiguous fourplexes sold for a combined sale price of approximately $5.43 million. Currently, the team has over $130 million in multifamily properties in escrow and on the market.
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.
