IRVINE, CA—NAI Capital's Multifamily Services Group recently represented the Cypress School District on an acquisition of two multifamily properties totaling 81 Units. The transaction totaled $26.7 million or $329,630 per unit.
Christopher Arvizu and David Knowlton, CCIM, SIOR, with NAI Capital Multifamily were represented the school district. The distict will use income generated by the properties to help fund educational programs.
Over the past five years the district has worked with the community to determine the best use for underutilized school sites. A community advisory committee, formed in 2011, developed a plan for six surplus property school sites. As part of that plan, two sites were identified for redevelopment and sold: Mackay Elementary School, which had been closed for over three decades, and Dickerson Elementary School that closed in 2009 due to declining enrollment.
The funds for the purchase came from the sale proceeds of the two closed school sites, which totaled over $30.5 million. From that sale the District entered into exchange agreements for two properties.
Coast Apartments is a 65-unit multifamily property located at 400 Merrimac Way, Costa Mesa, CA. Total purchase price $20.05 million. This Pride-of-Ownership property with lush landscaping consists of 3-stories with many exterior and interior upgrades, on-site leasing office, as well as, on-site laundry and parking. Adjacent to Orange Coast College the property is centrally located to many Orange County attractions.
Azure Apartments is a 16-unit apartment building located at 2704 Vanderbilt Lane, Redondo Beach CA. Total purchase price $6.65 million. This is a turn-key asset with an excellent unit mix and on-site parking garage. The property sits minutes away from the South Bay Galleria, as well as, many other South Bay destinations.
Arvizu said, "We were honored to work with the Cypress School District and assist them in realizing their goals of acquiring quality multifamily properties in today's highly completive market place. With the successful closing of the Coast Apartments and Azure Apartments we believe the District purchased premiere properties in two locations that will be in high demand for many years."
Cypress School District believes education is a community endeavor and extends its appreciation to the local community for their partnership in making a positive difference for students. It plans to use the net income generated from these properties to support its educational program and provide enriched learning opportunities for students. The remaining funds of the sale and purchase will be used for capital outlay expenses to support the district's facilities master plan.
"The community will also benefit from the redevelopment of the former Mackay site which includes a 2.9-acre city park and 47 single-family detached homes. The former Dickerson site will be turned into 68 single-family detached homes," added Knowlton.
NAI Capital Company is one of the Southern California's leading full-service commercial real estate organizations, providing a complete range of transaction, property management and consulting services. NAI Capital is one of the largest members of NAI Global, a premier real estate service network with 375 offices and 6,700 market leaders spanning the globe.
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