TUSTIN, CA-Laughlin Family Partnership's recent sale of Windsor Gardens, a landmark 70-unit multifamily complex here, represents a rare value-add opportunity for buyer LTK Venture I, a Newport Beach-based private-investment partnership, according to those involved in the deal. The property sold for $14.9 million.
“This was a significant deal for a variety of reasons,” says Colliers International's Pat Swanson, who, along with Brett Bayless, brokered the sale. “At a price-per-square-foot cost of $191, accompanied with at least 15%-below-market rates, this made for a great value-add play. Those are the investment hallmarks investors in multifamily properties want to see when they are considering a purchase like this.”
Located at 1651 Mitchell Ave., near the intersection of Walnut Blvd. and I-5, the single-story development is composed exclusively of two-bedroom units with one-and-one-half bathrooms. The property features garden-style attached residences on a nearly five-acre parcel of land, private patios and small yards. It also has underground parking, tennis courts and on-site laundry.
The complex was originally built in 1968 before being converted into condominiums in 1985, but has always been operated as rental units.
“This type of investment asset is a rare find in Orange County's current multifamily investment environment,” Swanson adds. “These types of investments are usually held for a very long time by investors and, when they do become available, as this one did, they usually do not remain on the market for very long. In fact, like this one, many never even make it to market.”
As GlobeSt.com reported last month, Strocher Heritage Plaza LLC sold Heritage Plaza, a 14,622-square-foot retail center at 135, 137 and 139 W. 1st St. in the historic Old Town District here, to AMDG Alliance for $5.5 million. The center is 92% occupied by a diverse mix of nine neighborhood tenants.
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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.
