Brookstone Apartments

BUENA PARK, CA-A portfolio of three apartment complexes totaling 344 units has hit the market at an asking price of $59 million, with the properties also being offered for sale individually, according to the Hendricks & Partners team that is listing the portfolio. The largest of the three, all of which are being offered debt-free, is the 184-unit Brookstone here in Buena Park. The other two are the 93-unit Cabot Bay in the Northern California city of San Leandro and a 67-unit property called “the Hills” in Glendale.

The portfolio is being marketed on behalf of a Dallas-based pension fund adviser by a Hendricks & Partners team including Dean Zander in the Hendricks West L.A. office, Shane Shafer of the Orange County office and Mark Feldman of the firm’s San Francisco Bay Area office.

The Hills

Zander points out that the debt-free offering of the properties will enable buyers to place 10-year fixed-rate financing at historically low rates on the complexes, “likely sub 5%,” he says. Shafer added, “Each of the properties has been upgraded or renovated to a certain extent, allowing an investor to complete the upgrades and capture significant upside in this improving rental market.” Feldman notes that , “The Bay Area vacancy rate is hovering close to 4%, and combined with unaffordable median-priced homes in a supply-constrained market, we’re enjoying rapid concession burn-off plus rising rents and improved performance.”

Cabot Bay

The Brookstone, at 7400 Artesia Blvd. at the corner of Artesia and Western, is being offered at $32 million. It was built in 1977 and renovated in 2007-2008. The Hills, being offered at $15.9 million, is at 1630 Calle Vaquero, adjacent to Glendale Community College. It was built 1968 and renovated in 2007-2008. Cabot Bay, at 13495 Bancroft Ave. on a street-to-street lot, was built in 1963 and renovated in 2007-2008. It is being marketed at an asking price of $11.3 million. Zander says that the team expects strong interest from local, regional and national investors including family trusts, high net worth individuals, and institutional advisers and REITs. Bid deadline is Nov. 19.