(Save the date: RealShare Apartments comes to the Westin Bonaventure, Los Angeles, October 24.)
MURRIETA, CA-GlobeSt.com has exclusively learned that the Arbors at California Oaks, a 460-unit community here is on the block for sale. Dean Zander, Vince Norris and Margie Molloy of Hendricks & Partners, tells GlobeSt.com that the listing price is $56.3 million, or just under $125,000 per unit.
The trio was selected by Orange County- based institutional owner to sell the 1989-constructed asset. The could not disclose the seller’s identity at this time, but pointed out that “An experienced and opportunistic owner can take advantage of the high occupancy and growing rents to significantly increase cash flow,” explains Molloy. “The Murrieta and Temecula sub-markets have improved significantly in 2012, with sub-market occupancy rates at or above 95%.” Continued rent growth and strong occupancy are forecast through Q4/2012, Molloy adds.
The Arbors is located along California Oaks Road in “a very desirable Murrieta submarket,” and sits between the 15 and 215 freeways. According to Hendricks & Partners, it is minutes from major retailers and services.
The community, spread over 26 acres, offers “a tremendous opportunity to improve and revitalize a significant asset in a prime demographic,” according to Zander. He tells GlobeSt.com that the owner’s motivation to sell was because of the following reasons: “the property was always intended to be a seven-year hold; debt prepay restrictions are now gone, allowing a buyer to secure favorable financing; and with occupancies above 95% and rent growth returning to the market, the value-add increment again presents a real opportunity.”
Norris adds that “This is a classic opportunity for an investor to take advantage of an attractive in—place cap rate, with room to grow rents, combined with placing new debt at historic low interest rates.”
The fully-amenitized garden style community is currently over 98% leased; it offers a mix of one and two bedroom apartment homes, and features a leasing center, tennis court, fitness center, and three pools and spas. Unit amenities include central air, private patios or balconies and most units include washer/dryers.
Current ownership has maintained and managed the property for many years, and has spent nearly $5 million since 2005 on various capital improvements including unit interior renovations, roofing, and various upgrades.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
