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ORANGE, CA-A fund advised by Hartford-based UBS Global Asset Management Real Estate has acquired the 278-unit Alexan Pacific Grove apartments from Trammell Crow Residential for $91.5 million, according to Moran & Co., which brokered the transaction. The newly constructed property is at 3099 W. Chapman Ave., adjacent to the Platinum Triangle redevelopment area surrounding Angel Stadium, where 9,000 homes and 300,000 sf of retail are expected to be developed over the next 10 years.

Mary Ann King, president, and broker Brett Betzler in the Costa Mesa office of Chicago-based Moran & Co. represented the seller. Before the property went back on the market recently, home builder K. Hovnanian had been under contract to buy it and market it as a condominium project.

Betzler tells GlobeSt.com that the property drew interest from multiple institutional investors, public REITs, pension funds and others. Alexan Pacific Grove is the first completed project in the immediate area, where developers have razed many of the industrial buildings and motels in the past year to make way for the new developments. The complex is within walking distance of Angel Stadium, with visibility from the Santa Ana Freeway.

The Alexan Pacific Grove is one of only two class A apartments in the immediate submarket, notes Kevin Andrade, senior managing director of Trammell Crow Residential. He adds that the property is expected to attract professionals working at the Disney Resorts, Orange County’s largest employer, along with those who work at the many nearby medical centers in the City of Orange.

Deals like the Alexan Pacific Grove rarely hit the market in Orange County, notes Ron Urdanick, managing director of UBS Global Asset Management Real Estate. Last year, there were only 10 trades in excess of $50 million, and five of those were sold to condo converters, he points out. One result of these conditions has been that class A apartment rents in Orange County are up nearly 10% from a year ago, Urdanick adds.

Situated on a 4.71-acre site, Alexan Pacific Grove features 153 one-bedroom, one-bath units and 125 two-bedroom, two-bath units. Additionally, some 4,416 sf fronts Chapman Avenue, a major thoroughfare.

Apartments range from 604 sf to 1,707 sf and 25% of them feature loft-style floor plans. Amenities include a resort-style pool, a landscaped courtyard, a clubhouse, an athletic center and a business center.

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