This marks the third time Leon has sold this particular site, and he says it has an interesting background. The property originally sold for $3.7 million 10 years ago; then it sold about four years ago to Nevis Homes as condos for $15 million. The current price as a multifamily property is more than 10 times the first sale price.

Tustin Cottages contains all large three- to four-bedroom units, each with a two-car, direct-access garage—unheard of for an apartment product, says Leon. “The rent is higher than normal, and the sales price was over $400,000 per unit. It's the highest sales price per unit in Orange County.”

The multifamily sector is not going to slow down at all if interest rates stay where they are, says Leon. “Lenders are willing to do shorter-term debt. When you go down as low as five years for the loan term, you can get it for 2.5%. Will these low interest rates continue? My crystal ball says yes because the federal government still has their hands full and will suppress rates for one to three years. It feels like that kind of environment.”

Leon adds that Orange County's multifamily fundamentals are already so strong. “From a supply side, we don't overbuild here. We have averaged adding 2,700 units per year, which is dramatically less than other markets. It keeps fundamentals so strong and solid. Even when we are in a down market, we're still at 92% occupancy. Orange County attracts so many investors because it's considered to be safe.”