CBRE announced the sale of two multifamily properties in Santa Ana, Calif., in separate transactions, representing both the buyers and sellers, all based in Orange County. The combined sales price was $2,825,000 for 10 units. Both sales were completed with all-cash buyers, showcasing the strong demand for investment opportunities in the area.
3720 South Marine Street
The property at 3720 South Marine Street in Santa Ana, a Covington-style fourplex, was sold for $1,575,000, equating to $393,750 per unit and $362 per square foot. The transaction was completed after just 13 days on the market, with a 40-day escrow and a 14-day due diligence period. CBRE’s Executive Vice President Dan Blackwell and Associate Amanda Fielder represented both the all-cash buyer and seller.
The four-unit complex, built in 1968, features a mix of two- and three-bedroom floor plans, with units averaging 1,088 square feet. The property, situated on a 7,288-square-foot lot, includes four garage spaces and two open spaces. Two of the units have new flooring, and all units are individually metered for gas and electricity, with washer and dryer hookups and individual water heaters.
“Our exclusive marketing process generated multiple tours of the property, and we secured an all-cash buyer for the highly sought-after Covington-style fourplex,” said Blackwell.
“Based on comprehensive research, the in-place rents are 20% below market rate, providing an opportunity to increase the cap rate from 3.52% to 4.76%,” noted Fielder.
“The property’s central Orange County location offers residents access to a wide range of lifestyle amenities, being only 1.3 miles from South Coast Plaza and conveniently near the 405 freeway,” added Fielder.
411-413 East Chestnut Avenue
The six-unit property at 411-413 East Chestnut Avenue in Santa Ana was sold for $1,250,000, representing $349 per square foot and $208,333 per unit. CBRE’s Blackwell and Fielder represented the repeat seller and all-cash buyer. The property spent 22 days on the market and sold at over 96% of the asking price.
Built in 1958, the single-story complex offers one- and two-bedroom floor plans, with a total of 3,582 square feet of rentable space on a 9,750-square-foot lot. The units are individually metered for gas and electricity, and the property features seven open parking spaces.
“The property offers the buyer an opportunity to increase rental rates by 25% to achieve a cap rate of 6.57% from the closing cap rate of 4.50%,” said Blackwell.
“Located in an opportunity zone, the property is commutable to over 1.4 million jobs and is situated in a strong rental market with more than 365,000 people within a three-mile radius,” noted Fielder. “The East Chestnut Avenue property is truly an ideal central Orange County location, with a Walk Score of 88, near major thoroughfares Bristol Street and West 1st Street, and just a short walk to Downtown Santa Ana.”
Blackwell adds, “Given the current market conditions, now is an excellent time for multifamily investors to acquire well-located properties like these. With strong demand for rental housing, attractive cap rates, and the potential for rent growth, these properties offer a compelling investment opportunity. Additionally, the central locations and proximity to amenities make them highly desirable for tenants, ensuring steady occupancy and long-term value.”
About the City of Santa Ana
The city of Santa Ana is a 27-square-mile, ethnically diverse city located 35 miles south of Los Angeles and roughly ten miles inland from the Pacific Ocean. As a highly populated city, Santa Ana ranks fourth nationally in population density, trailing only behind New York City, San Francisco, and Boston. Santa Ana acts as the county seat and is the second most populated city in Orange County, comprising more than 60 distinct neighborhoods, with an estimated population of 309,050.
Santa Ana is home to Santa Ana College, which welcomes nearly 40,000 students each year for university transfer preparation, career training, and personal development programs. The city is also a major business and professional hub, housing corporate headquarters for several major companies and regional headquarters for others.
Santa Ana boasts a booming retail environment, with some of the largest credit tenants in the nation and highly visited malls. The MainPlace Mall, conveniently located off the I-5, SR-55, and SR-22 freeways, is soon to be upgraded to a three-story super-regional shopping center, featuring over one million square feet of retail, dining, living, and entertainment. The Historic Downtown Santa Ana area is focused on joining together culture and community, home to a diverse collection of unique shops, premier restaurants, breweries, and art galleries.
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.
