UPDATE: Hovnanian Pays $160M for 154 Opus West Units

IRVINE, CA-An affiliate of New Jersey-based Hovnanian Enterprises paid $160 million for the 154-unit first phase of the Avenue One multifamily development, which it acquired from a partnership of Phoenix-based Opus West and Thompson|Dorfman Partners LLC of Sausalito. The buyers plan to acquire the remainder of the project's 404 units when they are completed.Terms of the transaction were not disclosed when the deal was first reported on GlobeSt.com in January, but the $160 million price was disclosed this week. The deal was brokered by the West Coast office of Chicago-based Moran & Co. and represents one of the largest multifamily transactions in Orange County in some time.Listing agents for Moran & Co. were Mary Ann King, president, and Brett Betzler, a broker in Moran & Co.'s West Coast office. Paul Marshall, VP of Opus West, says the seller had initially planned to operate Avenue One as rental units, but Hovnanian acquired the property for a condominium conversion because rising home prices in Irvine have made the units substantially more valuable as for-sale housing.King describes the deal as one of the latest indications that Orange County, which was once viewed as a suburb of Los Angeles, is a market unto itself. A little more than a decade ago there was just one 403-unit residential property in the Irvine Business Complex, she notes, but today there are 3,485 luxury apartments and condominiums in the complex.The Avenue One development is situated on a 5.94-acre site near the corner of Jamboree Road and Campus Drive. Some 847 new residential units are under construction in the area, including three high-rise condo towers that Opus West is building next door to Avenue One, and there are plans for approximately 4,500 more units in the next five years, King points out.When complete, the 404 Avenue One condominiums will be housed in three four-story buildings surrounding a central garage and courtyard. The unit mix will consist of 177 one-bedroom units, 213 two-bedroom units, and 14 three-bedroom condominiums. Ninety-four of the units will be lofts with high ceilings and extra windows.The second phase of Avenue One will includes 187 units and is expected to be completed in May. The final phase of 63 condos is slated for delivery in the first quarter of 2007.