Condo Specialist Pays $40M for 242 Units

Melinda Russell and Dean Zander of the Los Angeles office of Hendricks & Partners, who brokered the transaction, report that the property at 1440 W. Lambert Rd. sold in an all-cash deal. They note that Pacifica, a condo converter with years of experience, was one of 14 that bid on the property, which Zander and Russell marketed as an "ideal condominium conversion."The property included a recorded final tract map, its construction included copper plumbing and significant upgrades throughout, and its location near several universities and colleges with an enrollment of 120,000 represented another source of demand for housing. The property is near ample shopping and services, including WestRidge Plaza, which is anchored by WalMart, Sam's Club, Kohl's, Border's and Lowes. Built in 1974, the Villas at Arbor Creek is a gated community that features four swimming pools, barbecue and picnic areas, greenbelts and mature landscaping throughout the property. Its 242 units include one studio, 178 one-bedroom units and 63 two-bedroom units in several two-story buildings on a 10-acre site. The units average 772 sf and rent for an average of $1,047. The units include central air conditioning, private patios and balconies, dishwashers, walk-in closets and other amenities. Zander and Russell note that North Orange County's average rent has gained more than 41% over the past six years, compared to the county's 36% increase over the same period. "Since North Orange County remains the county's most affordable submarket, it has a tremendous potential for future rent growth," Zander says.