JPI Sells 1,079-Unit Apartment Portfolio in Anaheim
The three-unit portfolio includes Jefferson Rise, Jefferson Edge and REVO, which are located in Anaheim’s Platinum Triangle.
Multifamily developer JPI has sold a three-property apartment portfolio in Anaheim totaling 1,079 units. The portfolio includes Jefferson Rise, Jefferson Edge and REVO, which are located in Anaheim’s Platinum Triangle. JPI developed all three properties. MORE Residential acquired the portfolio.
JPI developed Jefferson Rise and Jefferson Edge as part of a joint venture with equity partner Grand China Fund, a Beijing-based private equity real estate fund, and the firm partnered with MORE Residential to build REVO. This was JPI’s second development with MORE Residential.
The three properties are located in an area known as Stadium Park, a 17-acre site adjacent to Los Angeles Angels of Anaheim Ballpark. The area has a wealth of amenities and entertainment options as a result, as well as close proximity to Anaheim’s Regional Transportation Intermodal Center.
According to Adrian Su, CEO of Grand China Fund, the assets were successful in the last year because Anaheim is a high-growth market where the housing supply hasn’t kept pace with rental demand. The dynamic wasn’t exclusive to Anaheim. The US multifamily market was on fire this year. Last year finished with record multifamily demand, with the sector setting an annual absorption record of 617,500 units nationally.
Absorption in the fourth quarter hit nearly 150,000 units, according to CBRE, a decline from Q3 numbers but still triple the quarterly average over the last decade. The year’s absorption numbers were also up 238% from 2020 levels and up 97% over 2019 figures. It is also 58% higher than the prior record of 390,000, which was set in 2000. Los Angeles, which is just north of Orange County, was among the markets with the most absorption last year. The overall vacancy rate also ended the year at a record low of 2.5% after falling by 40 basis points quarter-over-quarter. All told, 17 markets had vacancy rates of less than 2%, led by Orange County, along with Providence, and San Diego.
While multifamily investment surged in the last year, Anaheim has been on the list of investor’s top target markets for the last five years. Paul Julian, president of ARES, cited the same supply-demand dynamics years ago, and those are still at play today.