The 165-unit Vio Apartments complex in Tustin has sold for the third time in five years in what looks to be a big markup in price from its last two sales.
A Palos Verdes-based investor operating as Vio Tustin Investment LP last month completed the purchase of the 46-year-old property at 15742 Williams St.
The three-building complex sits just off McFadden Avenue, a few blocks from the Costa Mesa (55) Freeway near the Tustin-Santa Ana city line.
Property records show it was sold for a little more than $41.2 million, or about $250,000 per unit, by a venture between Sack Properties in San Francisco and Los Angeles-based Canyon Capital Realty Advisors.
Sack and Canyon Capital acquired what was then called Estrella in February 2015 for a reported $33 million, or about $200,000 per unit. The complex sold in 2011 for about $25.5 million when it was called Valencia Gardens.
Property records show the new owner has ties to Palos Verdes Development Management Co.’s Jerry Marcil, a real estate investor in Los Angeles County who owns more than 3,000 apartments, according to local news reports.
The 146,000-square-foot complex holds a mix of one- and two-bedroom units. Amenities include a swimming pool, barbecue and picnic area, shuffleboard and pool tables, and a fitness center, according to the sellers.
Brea Re-Do
Brea Imperial Shopping Center, a strip mall at the intersection of Imperial Highway and State College Boulevard, is in line for big renovations following its recent sale.
An LLC based out of the City of Industry last month paid a little more than $21 million for the 43,243-square-foot property, or $485 per square foot.
The deal’s capitalization rate was 4.95%, one of the lowest for an Orange County strip center sale this year, according to brokers with CBRE Group Inc. who worked on the deal.
The center is on five acres and was 75% leased at the time of the sale. Tenants include Bank of the West, Carl’s Jr., Active Ride Shop, and Alexander’s Hair Salon.
The property’s last upgrade was in 1993. The new owners plan “an extensive remodel and re-merchandising plan, which will include higher-end food and service tenants,” according to CBRE’s Arthur Flores. He represented the seller, which property records show to be an affiliate of Anaheim Hills-based Bequer Investments.
The buyer was represented by Henry Hong of Lee & Associates.
The brokers said the buyer was an OC-based family, although property records show the new owner—JLJ (USA) Investments LLC—is based in Los Angeles County.
Denver Deal
A new investment fund run by Irvine-based Steadfast Cos. has paid $47.4 million for an apartment complex near Denver.
The company’s Steadfast Apartment REIT III Inc. recently closed on the buy of a 240-unit Bristol Village in Aurora, Colo., about 10 miles east of Denver.
Bristol Village encompasses 10 three-story buildings with one-, two- and three-bedroom garden-style apartment homes averaging 901 square feet.
Rents average $1,266 per month at the 95.8%-occupied complex, according to the buyer.
It’s the REIT’s second investment after a $7.5 million buy of a 136-unit complex a few months ago close to Chicago.
Steadfast has raised more than $36 million for the new REIT from investors as of early last month, according to regulatory filings. It financed the Aurora buy with a $35 million loan from Berkeley Point Capital LLC.
The investment fund could ultimately raise as much as $1.3 billion from investors, according to regulatory filings. Steadfast also operates other nontraded REITs, including those that target apartment complexes.
