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Three Apartment Properties Trade for Over $200M

ORANGE COUNTY, CA-Brokers expect transactions will bring investors back into market by defining market levels. Low interest rates mean buyers will see immediate cash flow.

By John McCloud | Updated on April 30, 2009

ORANGE COUNTY, CA-In a set of transactions its brokers believe will finally provide the market definition investors are seeking, Northwestern Mutual Insurance has sold three class A apartment complexes in Alisa Viejo and Rancho Santa Margarita for more than $200 million. The properties, which closed over the last 10 days, sold at a sub 7% cap rate to private buyers.

The properties include the 386-unit Aventine at Aliso Viejo, which sold to Pacific Coast Management of Newport Beach, CA for $56.25 million; 484-unit Alize at Aliso Viejo, which sold to Sequoia Equities of Walnut Creek, CA for $75 million; and 498-unit Avila at Rancho Santa Margarita, which sold to Stoneridge Capital Partners of Newport Beach for $70 million.

The seller was represented in all three deals by Joe Leon and Dean Zander, partners at Hendricks & Partners, and Raymond Eldridge and Kevin Mulhern, senior vice presidents at CB Richard Ellis. According to Leon, Northwestern Mutual decided to sell the properties, which it had owned since they were completed in the late 1990s, to shore up their cash reserves. “It was a balance sheet play,” he says.

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