Anaheim continues to be Orange County’s hub for blockbuster multifamily deals this year.
A Los Angeles investor recently spent $146.5 million for the Oasis Anaheim, a 312-unit apartment complex in northeast Anaheim, just north of the Riverside (91) Freeway.
Gelt Inc., a value-add multifamily investor, bought the site for nearly $470,000 per unit from a joint venture led by San Diego-based Redhill Realty Investors.
Sean Deasy, Ryan Fitzpatrick, and Chelsea Jervis of JLL represented both sides of the deal.
It’s the fourth apartment complex in Anaheim to trade for more than $100 million this year, according to CoStar Group Inc. records.
Of the four, the $470,000 per-unit price for the Oasis is the highest; the other three traded between $400,000 and $417,000 per unit.
Only one other reported apartment deal in OC, a $108 million transaction in Brea this June, has topped the $100 million mark this year. That complex, known as Joule La Floresta, went for $530,000 a unit.
The two-building Oasis property at 3530 E. La Palma was built in 2009 on a 5.2-acre parcel within Anaheim Canyon submarket.
The site is between Kaiser Permanente’s Anaheim hospital and the Anaheim Canyon Metrolink Station.
The area’s caught attention from both apartment investors and developers. Oasis is located adjacent to Link OC, a proposed mixed-use development that will include apartments, office, hospitality and retail components.
Houston-based Hines acquired the 15.5-acre site, then referred to as Pacific Center, in 2016 and has since sold the site after receiving entitlements for the project.
City officials indicate Irvine-based Western National Group will head the apartment portion of the project, which will include two buildings totaling 406 units.
The four- and five-story Oasis complex includes a unit mix of lofts, townhomes, and one- and two-bedrooms units averaging approximately 937 square feet.
Amenities include a resort-style pool, fitness center and yoga studio, business center, outdoor grills and 626 parking spaces.
Gelt is planning a renovation that will add upgrades to the units, including quartz countertops, stainless steel appliances, hardwood-style flooring and other modern improvements.
“The seller did a very nice job renovating about 30% of the units of this Class A property, and Gelt plans on completing similar significant upgrades to the remaining 217 units,” said Josh Satin, vice president of acquisitions with Gelt.
The sellers paid a reported $106 million for the complex three years ago, according to CoStar records.
The purchase adds to several recent deals in the state for Gelt, which has traditionally focused on investing outside of California.
“With a lessening arbitrage in cap rates between secondary and primary markets, we feel it has been a strategic move to add to our Southern California portfolio,” said Partner Keith Wasserman.
“We are bullish on the multifamily fundamentals here over the long term.”