LOS ANGELES-BRE Properties Inc. of San Francisco has acquired the 128-unit complex from the Irvine-based Bascom Group for $26.6 million. Bascom bought the property in 2002 and upgraded it in a value-added play.
The sales price works out to $207,813 per unit and $217 per sf, notes Ron Harris of Marcus & Millichap, who brokered the sale along with Marcus & Millichap's Gregory Harris and John Walsh. The Marcus & Millichap team represented both the buyer and the seller.
The complex was 97% occupied at the time of the sale, according to Gregory Harris, who notes that the property lies within a strong rental market with rent growth of 7.5% over the past 12 months. Harris says that high barriers to entry and renovations completed by the seller added to the property's appeal to prospective buyers.
Built in 1987, the Palm Court complex at 323-333 S. Catalina St. sits on 1.18 acres. It consists of one five-story building with one single, 49 one-bedroom and 78 two-bedroom units. The apartments range from 360 sf to 1,175 sf.
When the Bascom Group bought the property for $12.5 million in 2002, when it was known as the Catalina Apartments, Bascom said that it planned to spend $2.25 million on renovations and upgrades. The property is one of a number of assets that the Irvine-based company has acquired and upgraded in Southern California in recent years.
BRE develops, acquires and manages apartment complexes in the Western US. It owns and operates 84 properties totaling 23,826 units in California, Arizona, Washington and Colorado.
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