Steve Heri of the Private Client Group notes that the cap rate exceeds the average of 7% in Orange County, where many properties are priced at 10-times-gross or higher, compared with the 9.6 times gross that this property brought. Heri and the group's Cara Weichman brokered the sale.

The single-building, two-story, wood frame-and-stucco complex was built in 1988 and was 100% occupied at the time of the sale. It consists entirely of two-bedroom, one-bathroom units that measure more than 800 sf and rent for an average of approximately $900 per month. The secure-access property is located within walking distance to many community amenities, such as schools and parks.

Weichman says the seller had held the building for many years, buying it soon after it was constructed. The buyer had recently sold three small San Diego properties and was looking to consolidate her portfolio into one building via the 1031 Exchange.