Casper represented both buyer and seller along with partner Bruce Furniss of Hendricks & Partners in Anaheim. The properties include 156 units at the Villas at San Dimas Canyon at 325 S. San Dimas Canyon Rd.; 102 Units at the Villas at Bonita at 433-477 E. Bonita Ave.; and 30 units at the Villas at 930 N. San Dimas Ave.

Casper says he was surprised at the high level of investor interest in the property because seller CT Realty had already completed what he called "one of the best Tier One-type renovations that I've seen." He explained that such renovations typically start with properties that were rehabbed and invest $5,000 to $15,000 per unit to improve them.

The CT Realty renovations initially led Casper and Furniss think that the renovations "had taken most of the juice out of the deal" and left little upside for a new buyer. But after analyzing the properties further, he tells GlobeSt.com that "we determined that additional interior renovation of roughly $2,500 (per unit) could generate rental upside of $75 per month, translating to a 36% annual return" on the capital invested in the renovations. He says the market agreed, with five prospective buyers making offers at or above the list price of $36.5 million.

The portfolio includes 23 buildings in the Villas at San Dimas Canyon; 13 in the Villas at Bonita; and four in the Villas at North San Dimas Avenue. The 288 units consist of 282 two-bedroom apartments; one one-bedroom; one three-bedroom, and four four-bedroom units. The apartments all have air conditioning, some central and some with wall units.

The apartments range from 750 sf to 1,150 sf and most rent for $1,195 to $1,225 per month. Occupancy of the portfolio was about 96.9% at the time of the sale. The complexes were built in 1978 and 1981 and are of wood frame and stucco. CT Realty had owned them for a little over two years.