Marcus & Millichap Brokers $79 Million Orange County Multifamily Asset Sale
Marcus & Millichap (NYSE:MMI) announces the sale of Chateau de Ville, a 254-unit multifamily property in Anaheim, California, for $79,076,710. The property was sold for $311,326 per unit in a market with projected rent growth. The sale was facilitated by Marcus & Millichap's executives, Tyler Leeson and Matt Kipp, representing the seller and buyer respectively.
The sale of Chateau de Ville represents a significant transaction within the multifamily real estate sector, particularly within the context of Orange County's rental market. The high per-unit sale price of $311,326 reflects the premium on real estate in a region characterized by low vacancy rates and consistent rent growth. The scarcity of available properties and the competitive environment suggest a bullish outlook for similar assets in this locale.
From a market research perspective, the data points to a robust demand for multifamily units in areas with strong employment drivers, such as Anaheim, which is home to major employers like Disneyland and Anaheim Regional Medical Center. The strategic location near key highways and educational institutions further enhances the property's value. Investors might be attracted to such assets due to their potential for stable income streams and appreciation in value over time.
Analyzing the financial implications of this transaction, the sale price of over $79 million for a property that hasn't changed hands in over half a century indicates a possibly significant capital appreciation. The low vacancy rates, which are below 4% for Class A and B multifamily units, are likely to support strong rental yields, making it an attractive investment for the buyer, who is a private investor. This transaction could also set a benchmark for pricing in the region, potentially influencing future sales and valuations of similar properties.
Investors and stakeholders should note the long-term implications of such a purchase, including the cost of maintenance and upgrades for a property built in 1970, balanced against the potential for continued rent increases in a tight market. The financial health of the region, driven by stable employment and growth prospects, underpins the investment's solidity.
The dynamics of Orange County's multifamily market, as indicated by this sale, are of particular interest to real estate investors. The sustained rent growth and low vacancy rates highlight the area's desirability and the limited supply of comparable investment opportunities. The transaction's size and the property's features, such as controlled access and amenities like a swimming pool and fitness center, align with the preferences of modern tenants and can contribute to tenant retention and attraction.
Investors should consider the broader economic conditions and regional market trends when evaluating such investments. The demand indicators, including employment growth and demographic shifts, favor the multifamily segment in this region. However, potential challenges such as regulatory changes, property tax adjustments and economic downturns could affect the investment's performance.
02/22/2024 - 01:11 PM
ANAHEIM, Calif. --(BUSINESS WIRE)--
Marcus & Millichap (NYSE:MMI) , a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced today the sale of Chateau de Ville, a 254-unit multifamily property in Anaheim, California . The asset was brought to market for the first time in over 50 years and traded for $79,076,710 $311,326
“Orange County has been the tightest major rental market in California for the past three years, and this trend is projected to continue with a fourth straight year of rent growth,” said Tyler Leeson, executive managing director investments in Marcus & Millichap’s Orange County office. Leeson and Matt Kipp, Marcus & Millichap first vice president investments, represented the seller, a long-term partnership, and procured the buyer, a private investor. “As the only market in the nation to enter 2024 with Class A and Class B multifamily vacancy rates below 4% , we expect to see increasing competition for apartment assets throughout Orange County,” said Kipp.
The property is in North Anaheim , home of Knott’s Berry Farm. Interstate 5 is nearby, and California State University, Fullerton , Hope International University, and Cypress College are within a short drive. Anaheim’s major employers include Disneyland, Anaheim Regional Medical Center, Kaiser Permanente and the Honda Center.
Built in 1970 on nine acres, Chateau de Ville is a 21-building, controlled-access community with a swimming pool, clubhouse and fitness center. The unit mix is one- and two-bedroom apartments with hardwood floors, walk-in closets, air-conditioning and a patio or balcony.
About Marcus & Millichap, Inc. (NYSE: MMI)
Marcus & Millichap, Inc. is a leading brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services with offices throughout the United States and Canada . As of December 31, 2023, the company had 1,783 investment sales and financing professionals in over 80 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The company also offers market research, consulting and advisory services to clients. Marcus & Millichap closed 7,546 transactions in 2023 , with a sales volume of approximately $43.6 billion . For additional information, please visit www.MarcusMillichap.com .
View source version on businesswire.com: https://www.businesswire.com/news/home/20240222177615/en/
Gina Relva, VP of Public Relations
Gina.Relva@marcusmillichap.com
Source: Marcus & Millichap
What is the name of the commercial real estate brokerage firm mentioned in the press release?
Marcus & Millichap (NYSE:MMI)
How much was Chateau de Ville sold for in Anaheim, California?
Who represented the seller in the sale of Chateau de Ville?
Tyler Leeson and Matt Kipp from Marcus & Millichap
What is the unit price at which Chateau de Ville was sold?
What are some of the amenities at Chateau de Ville?
Swimming pool, clubhouse, fitness center
