The seller was Newport Terrace LP of Laguna Hills, CA. The buyer was Richter ET, AL of Sierra Madre, CA. Brombal says that with the property's coastal location near thousands of local jobs, its new owner will benefit from solid long-term rental growth.
Newport Terrace, which sold for $11.3 million, is a 49-unit complex at1401-1409 Superior Ave. in Newport Beach. The sales price works out to $230,612 per unit and $288.09 per sf. The proforma actual cap was 5%with a 12.07 gross rent multiplier, Brombal points out.
The Newport Terrace complex was built from 1963 through 1974 and renovated in 2003. The complex consists of a cluster of seven, two- and three-story buildings situated on three contiguous parcels.
The unit mix consists of 22 one-bedroom, one-bathroom suites; 25 two-bedroom floor plans and two three-bedroom, two-bath units. Many of the units include fireplaces and some feature balconies. The two-bedroom units are configurations of townhouse-style floor plans, some with one and a half baths and some with two baths.
Common area amenities include a pool, spa, community BBQs, garages, a fitness center, a business center and a leasing office. The property is within walking distance of Newport's beaches and is close to a host of services, facilities and amenities, including Hoag Memorial Hospital, which is across the street.
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