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MISSION VIEJO, CA—National real estate investment company Acacia Capital has purchased Madrid Apartment Homes, a 230-unit luxury apartment community here, for approximately $83 million from Essex Property Trust, a publicly traded REIT based in San Mateo, CA. The asset “presents an excellent opportunity to create greater returns through a renovation program in the future,” says CBRE's John Montakab in a prepared statement.
Montakab, along with CBRE's Stewart Weston, Kevin Mulhern and Rachel Parsons, represented both the seller and the buyer in the transaction. Financing for the deal was provided by the firm's Troy Tegeler and Trevor Breaux.
Graham Davidson of Acacia Capital tells GlobeSt.com, “We like the long term fundamentals of the multifamily market in South Orange County, and we think that there is an opportunity for us to add value to the property through upgrades to both the amenities and to the unit interiors.”
Madrid, built in 2000, is located at 28401 Los Alisos with immediate access to SR-241. It features an upgraded clubhouse, swimming pool and spa with BBQ area and modern fitness center. Each apartment in the community averages about 992 square feet, and the property boasts three-story Mediterranean architecture, “lush” landscaping and panoramic views of the Saddleback Mountains.
Also in the statement, Weston says for assets like Madrid, “sellers can achieve attractive pricing with very little friction.” He calls the move strategic in that repositioning of the property would make sense.
Montakab adds that the asset is “surrounded by numerous established master-planned communities with strong demographics, access to top-rated schools and proximity to some of Orange County's largest employers.”
As we reported in July, employers are drawn to Mission Viejo's redeveloped office assets, including CERRO, a four-story professional office building at 27401 Los Altos in Mission Viejo, CA, that was completed by Bixby Land Co. earlier this year and is now 93% leased. Included in that leasing activity is a transaction with Pulte Homes, which will occupy the majority of the top floor in lease totaling 13,798 square feet and spanning 78 months. Justin Hill and Simon Dillon of CBRE represent Bixby in the transaction, although lease terms were not disclosed.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
