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GARDEN GROVE, CA-A buyer in a 1031 exchange from the sale of another apartment investment has paid $166,667 per unit for a 15-unit apartment complex, one of the highest prices per unit paid in the Garden Grove market for a comparable property, according to the CB Richard Ellis Private Client Group in Anaheim.

Steve Heri and Cara Weichman of the Private Client Group, who represented both the buyer and the seller, describe the property at 13871 Shady Lane as a condominium-quality project. They note that the $2.5-million sale marks the first time the complex has traded hands since it was built in 1987.

The property, which is situated near Westminster Avenue, consists of four buildings comprising 15 three-bedroom, two-bathroom, townhouse-style units. The complex features two-car garages, washer-dryer machines in each unit, and what the CBRE brokers describe as “the security of a gated community at the end of a private road.” The units measure approximately 1,250 sf each, with vaulted ceilings, skylights, and individual water heaters. Rents range from $1,200 to $1,400 and the complex had one vacancy at the time of the sale, but the CBRE brokers say the 15 units usually run at 100% occupancy.

Heri describes the sales price as an incredible cost per unit for the area and for the Orange County market in general. Both seller and buyer agreed that the property is unique in the market and, even at this price, was significantly below replacement cost, Heri adds. Both parties are private local investors.

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