According to Jay Skenderian of Morgan Skenderian's Newport Beach office, the property is a two-building complex that consists entirely of one-unit apartments. Skenderian and partner Ken Morgan represented buyer and seller.
The Northgate Lane complex, built in 1959, was 100% occupied at the time of the sale. The apartments range from 550 sf to 775 sf and rent for $695 to $775 per month, but Skenderian says rents are probably about 15% under market. He says the complex needs about $50,000 to $75,000 of rehabilitation and renovations, which the new owner is planning to do. The seller had owned the property for 10 years, according to Skenderian, who says the seller is investing the proceeds from the sale in a retail property in a 1031 Exchange. The seller is switching to a retail property in order to own something with fewer management demands, he says.
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