A Tustin apartment complex just sold for $43 million with one of the lowest expected return rates from rents seen here lately.
Carmel Partners Inc., a San Francisco-based real estate investor with an Irvine office, bought Park Place, a 246 apartment complex. The deal is Carmel’s third big apartment buy in Orange County and its first in Tustin.
The 5.6-acre complex is on Main Street next to Santa Ana’s Prentice Park, near the intersection of the Santa Ana (I-5) and Costa Mesa (55) freeways.
The seller was Park Place Fund Ltd., a Southern California-based family partnership that had owned the apartments since they were built in 1969.
The apartments sold for about $175,000 each, or about $197 per square foot. That’s just a touch higher than the $171,000 per unit average seen for local apartment deals in the past year, according to the latest figures from the Newport Beach office of Marcus & Millichap Real Estate Investment Brokerage Co.
For more on this story, see the March 26 edition of the Business Journal.
