Cara Weichman of the CB Richard Ellis multi-housing group in Anaheim tells GlobeSt.com that the new owner already has begun work on the property at Mulberry Drive and Regatta Avenue, which he bought from another private investor who had owned it for about a year. Weichman and Steve Heri of CBRE's Private Client Group represented seller and buyer in the transaction, which closed at $84,074 per unit, just above a 6% cap rate.

Heri and Weichman describe the improvements under way at the 94%-occupied complex as "an extensive renovation and rehabilitation program" that will include a re-branding campaign featuring common-area improvements, landscaping, interior upgrades and new plumbing with copper lines. The new owner also is constructing a model unit and rental office. The plan is to stabilize the income stream by increasing rents to market levels.

The CBRE brokers say the deal proves that good value-added apartment buys are still out there, even though much of the talk in the industry is about how difficult it is to find value-added apartment plays these days. Heri says that while the market "is indeed tight" for apartment deals with significant upside, the Villas Los Pinos property is in an excellent submarket and shows promise for a greatly increased cash flow through renovation as well as stronger management.

Built in 1959, the Villas Los Pinos consists of nine buildings on nine parcels for a total of 4.1 acres. There are nine one-bedroom-one-bathroom units; 125 two-bedroom-one-bathroom units; and one three-bedroom-one-bathroom unit. Sizes range from 7595 sf to 950 sf.

The three-bedroom units are about 950 sf, the two-bedrooms 840 sf, and the one-bedrooms 795 sf. Current monthly rents are in the $600 range for most of the apartments, but market rent will be $1,000 with the renovations. Weichman says the buyer sees a strong demand for the renovated apartments because the Whittier submarket is strong and continues to improve as many tenants are priced out of the Orange County rental market.