CBRE announced the sale of four multifamily properties in Huntington Beach, Calif., in separate transactions, totaling 34 units. The combined sales price was $17,925,000, representing $527,206 per unit and 97% of the asking price. This marks the first time these properties, built in the early 1970s, have been available for sale. Notably, all four properties are located within one to three blocks of the beach and CBRE achieved an impressive average listing-to-closing timeframe of 90 days for each property.
CBRE Executive Vice President Dan Blackwell and First Vice President Mike O’Neill represented the seller, a local family trust, in all four transactions. The properties include:
212 15th Street: An eight-unit multifamily property with 6,538 rentable square feet sold for $3,850,000. The property features a mix of one- and two-bedroom units, each with a private patio or balcony, situated across a double lot (totaling 7,638 square feet), two blocks from the beach. The units are individually metered for gas and electricity. There are a total of 12 parking spots – eight garage spaces and four open spaces.
According to Blackwell, the team generated seven offers for 212 15th Street and selected an Orange County-based buyer in a 1031 exchange.
In addition to its prime location, the apartments at 212 15th Street also present a value-add opportunity,” O’Neill highlighted. “Through a renovation plan, current rents can be increased by approximately 28% to reach market levels, allowing the investor to capitalize on unrealized income potential and achieve a cap rate of 5.08%, up from 3.56%.”
125 16th Street: An 18-unit multifamily property sold for $8,650,000. The apartment community features a mix of one-, two-, and three-bedroom units, some with ocean views and either their own private patio or balcony. With 15,809 rentable square feet, the multifamily complex is situated across six lots, totaling 17,625 square feet (0.40 acres). The apartment community features a courtyard, sun deck, laundry facilities, and an on-site manager. Blackwell and O’Neill represented both the buyer, a repeat client based in Fountain Valley, Calif., and the seller in this transaction.
“The property is situated close to Pacific City, restaurants, and shopping and is only 0.1 miles from beach access,” O’Neill highlighted. “The multifamily community also offers a compelling value-add opportunity. With a strategic renovation plan, rents can be increased by approximately 36% to meet current market levels, allowing the investor to realize untapped income potential and achieve a cap rate of 5.54%, up from 3.55%.”
317 & 321 22nd Street: Two neighboring fourplexes sold for a combined $5,425,000. Each of the two-story multifamily buildings offers 4,101 rentable square feet and sits on a 5,750-square-foot lot. Both fourplexes feature a mix of one-, two-, and three-bedroom floorplans with either a patio or balcony. Both communities feature six single-car garages, one open-space parking spot, and a laundry facility. A new roof was installed on both buildings in 2019.
“We represented the repeat client seller and generated eight competitive offers, selecting an all-cash buyer who wanted to purchase both assets. We closed escrow in 32 days at 98.6% of the asking price,” Blackwell noted. “The two neighboring multifamily assets are identical properties, each sitting on a double lot. As a result, the investor acquired a total of four contiguous lots, offering potential alternative asset plans.”
“These four individual sales represent a complex transaction to meet the needs of our seller-client, a local family trust,” said O’Neill. “Utilizing our investor and broker network, our team generated five to eight offers for each property, highlighting the strong coastal demand for well-located assets in Huntington Beach.”
“We are thrilled with the outcome of these four transactions,” said Blackwell. “Our ability to navigate the complexities of multiple transactions simultaneously showcases the strength and expertise of our team. We leveraged our extensive investor and broker networks to attract a diverse pool of buyers, ultimately maximizing value for our client.”
O’Neill added, “The long-standing relationship we built with the ownership group since 2017 was instrumental in understanding their goals and delivering exceptional results. Our consistent communication and market insights ensured a smooth and successful sale process.”
“The coastal Huntington Beach market continues to demonstrate robust demand for well-located multifamily assets,” said Blackwell. “These sales validate the strong interest from investors seeking quality properties in prime coastal locations.”
Huntington Beach, a seaside city in western Orange County, is renowned for its 10-mile coastline, mild climate, and excellent surfing, earning it the nickname “Surf City.” 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). The city is a hub of activity and entertainment, offering a charming community, diversified economy, varied housing, excellent schools, marinas, parks, and exemplary healthcare.
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.
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.
