Older Apt. Assets Are All the Rage

The Heights was built in 1987.

ORANGE COUNTY, CA—The Mogharebi Group has sold two two-story multifamily assets built before the 1990s for high per-square-foot prices after garnering multiple offers. The properties comprise the Heights, a 30-unit complex at 704-706 West First Ave. in La Habra, and the Minnie Street Apartments, a 20-unit complex at 1426 and 1430 South Minnie St. in Santa Ana.

Mike Marcu, SVP of TMG, tells GlobeSt.com that the older buildings that attract the most investor interest are often in gentrifying neighborhoods. “The rental upside in these locations, created by shifts in the tenant base, is attractive to investors looking to add value by repositioning properties.” Marcu adds that in areas that are not yet seeing gentrification, older buildings offer the best buying metrics, which can be particularly attractive to investors looking for increased yield.