One of Orange County’s top apartment investors is bolstering his portfolio in Tustin.
Patrick Cadigan, a private investor whose family runs Newport Beach real estate firm Cadigan Communities, recently closed on the purchase of Terra at Tustin apartment complex near the intersection of the San Diego (5) and Costa Mesa (55) freeways, 1 mile north of The District at Tustin Legacy.
The 116-unit gated community sold for $41 million, or about $353,000 per unit.
Built in 1996, the 92,760-square-foot property is on nearly 5 acres.
The two-story community recently underwent a significant renovation, according to Greenwood & McKenzie, which brokered the deal on behalf of Cadigan.
“Terra at Tustin is a high-quality multifamily community that has recently received nearly $1 million in upgrades to its units and common areas,” said Greenwood & McKenzie General Partner Jim McKenzie.
“We believe this property is well-positioned to attract a strong resident base of highly educated, high-income tenants.”
Greenwood & McKenzie will manage the property, which has one- and two-bedroom units with private patios and balconies; area amenities include a swimming pool, dog park, barbecue area, outdoor fire pit and fitness center.
Financing for the recent sale was provided by Capital One Multifamily Finance. The seller was Palo Alto-based Pacific Urban Residential.
Priciest Area Acquisition
The deal is the priciest local multifamily sale reported to date in 2020, and brings Cadigan’s local portfolio to north of 2,500 units.
Much of his portfolio is for older properties in central OC, although he’s made some notable deals for relatively new developments as well.
Cadigan made his priciest reported local deal last July when he paid $98 million for the Nineteen01 complex in Santa Ana, about 2 miles from Terra at Tustin.
The 264-unit, midrise project sold for $98 million, approximately $370,000 per unit. The project was about 95% leased at the time of the sale, and was built in 2016, representing Cadigan’s entry into new Class A projects.
The sale marked the No. 4 priciest apartment sale in 2019 (see listing, page 29).
Electronics to Apartments
Cadigan, a Corona del Mar resident, is former chief executive and president of Electronic Engineering Co. of California, one of OC’s first electronics manufacturers.
Data from Marcus & Millichap Research Services suggests average rent growth in the Tustin market should grow 3.3% annually through 2023, while occupancy is expected to top 96% over the same period.
