X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEWPORT BEACH, CA-The 18-unit Eastbluff Townhomes complex has sold for nearly $478,000 per unit at a 3.5% cap rate and nearly $352 per sf, one of the highest priced apartment assets of its size ever in Orange County, according to Steven Brombal of the Newport Beach office of Hendricks & Partners. Brombal tells GlobeSt.com that the property, at 837-871 Amigos Way in the Eastbluff neighborhood, closed escrow at $8.6 million in a deal between two local private investors.

Brombal, who was the listing agent on the property, points out that the seller had taken rents from an average of $1,597 to $2,197 per month at the complex, which was built in 1969 but has only been on the market one other time, in 2004, when Brombal was the listing agent. The complex is located in the heart of Newport Beach, with many units featuring views to Fashion Island, and was designed and built by noted local architect Bill Ficker.

The property was originally constructed on leased land, but Ficker bought the leasehold interest in 1992 and as a result a special land-use restriction was recorded that prohibited condo conversion without renegotiation of the land sales price to the higher valued usage. “Thus, condo conversion is really not a play on this deal, and pricing with respect to the special land use restriction took this into consideration,” Brombal says.

All units are townhouse style patio-homes featuring three bedrooms and either two or two and a half baths. Rents at the time of the sale were $1,950 on unrenovated units to a high of $2,450 on renovated units. Ten of 18 units were fully renovated, and Brombal says that the new owner’s upside arises from approximate attainable 8% rent increases via minimal cosmetic upgrades to the remaining eight unrenovated units and a potential 24% increase by completing the balance of the renovation.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. APARTMENTS SPRING 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.