Costa Mesa apartment complex sold for .4 million.

A recent transaction in the Costa Mesa real estate market saw a 24-unit apartment complex change hands for .44 million, which translates to approximately 3,333 per unit, according to a report by Media News Source. The property, located at 291 Avocado Street, features two interconnected 12-unit buildings and spans nearly one acre in the Westside Costa Mesa area.

This 61-year-old complex encompasses a total of 18,012 square feet and consists of 20 one-bedroom, one-bath units, as well as four two-bedroom, one-bath units. For residents, the property provides an array of amenities, including 45 parking spaces, a central courtyard, and on-site laundry facilities. Current rental prices for these units range from ,195 to over ,495, as noted by Zillow.

Under the guidance of Marcus & Millichap, the Leeson Group represented the seller, Curt Grieder, in this significant deal, while the Rigas Family emerged as the buyer. Recent renovations to the property included the installation of a new roof, copper plumbing, and upgraded electrical subpanels, enhancing its overall value.

Media News Source highlighted that the buyer appears committed to further improvements and operational enhancements for the property. With 19 of the 24 rented units already renovated, and several major capital improvements completed, the investment offers a stable source of in-place income along with significant potential for further enhancement.

To finance this acquisition, the buyer executed a 1031 exchange, transitioning from an investment in retail and land assets situated outside of Orange County. This strategic move contributed to a swift and efficient closing process, demonstrating the fluidity of the current real estate market.

This transaction underscores the robust demand for multifamily residential properties in Costa Mesa, a region characterized by its vibrant community and convenient access to various amenities. As rental rates remain elevated, investors continue to see value in properties that exhibit both existing cash flow and opportunities for physical upgrades and operational improvements.