In one of its recent purchases, the Prometheus Real Estate Group, based in Redwood Shores, CA, paid $42 million for the Cascades Apartments, an Anaheim Hills complex with 292 units. The sale averaged out to $144,000 per unit, just short of the record $145,000 per unit paid for the Lakes complex in Costa Mesa in 1998.
Developers, pension funds and investors, like Prometheus, from all over the state are looking to Orange County for affordable properties to buy. But with little new product under construction and a few owners controlling the majority of large complexes in the region, there are few opportunities for outsiders, especially with low vacancy rates and escalating rents.
During the past two years alone, rents have gone up 19% overall in Orange County to an average of $1,106 a month, with rents in attractive locations like Anaheim Hills, Irvine and Aliso Viejo increasing even more.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
