Holthouser: The advantage to buying such a diverse portfolio is that you spread your risk across multiple product types—in this case, retail, hospitality, multifamily, creative-office and event space. On the flipside, the challenge is this type of purchase requires more hands-on management and a thorough understanding of the demands of the community and neighborhood each property sits in. The buyer is an experienced local Laguna Beach real estate investor, which gave him and his team a leg up over other potential bidders and the advantage to be able to formulate a long-term strategy to maximize the value for each of the properties.

GlobeSt.com: How should buyers approach a portfolio to get maximum return from their investment?

Holthouser: Buyers should definitely have an expert by their side to help with the research and analysis needed to properly assess each property's situation and to evaluate the overall potential of the portfolio. This buyer team also benefitted from having members with a successful track record in owning management-intensive properties and having a deep knowledge of the submarket. One shoe doesn't fit all, and this type of purchase simply requires more knowledge and homework to have it add up.

GlobeSt.com: What types of portfolios should buyers avoid?

Holthouser: Buyers should avoid portfolios with properties that are outside of their comfort zone and expertise for both management requirements and product type.

GlobeSt.com: What else should our readers know about this?

Holthouser: Coastal cities throughout Southern California continue to offer a stable and safe investment environment. The investor appetite for core assets along the coast remains high due to strong performing fundamentals and long-term growth potential.