Garden Grove is set to receive a new batch of apartments as part of the second phase of Brookhurst Place, a mixed-use development that kicked off in 2016.
Kam Sang Co., an Arcadia-based real estate and hospitality development firm, last month purchased a 5.5-acre parcel from the city for $18 million, or about $3.3 million per acre.
The parcel at 10115 Garden Grove Blvd. is north of the Garden Grove (22) Freeway, near the intersection of Brookhurst Street and Garden Grove Boulevard, inside Garden Grove’s Korean Business District.
It’s adjacent to the first phase of Brookhurst Place at 12801 Brookhurst St.; Kam Sang delivered the first five-story building at the development, a 180-unit apartment complex, in 2018.
The sale is the priciest land transaction on record for the city in several years.
Future Phases
Future phases of Brookhurst Place were initially expected to include 462 additional apartment homes, of which up to 120 will be affordable housing units, 58 for-sale condominiums, up to 200,000 square feet of commercial and retail space and a 100-key hotel.
The project has been touted as the city’s largest mixed-use development.
The first phase is nearly fully occupied, with just 1.1% vacancy, according to CoStar Group. Rents start at $2,372 for a one-bedroom unit, which averages 836 square feet, and top out at $3,625 for a three-bedroom unit, which averages 1,569 square feet. Amenities include a clubhouse, fitness facilities and a pool and spa.
Records indicate the adjacent 5.5-acre site will make way for a slightly larger apartment building totaling 300,000 square feet with 460 units. It’s unclear whether the other commercial additions, or for-sale homes, will move ahead as once envisioned.
The average rent for a one-bedroom apartment in Garden Grove is about $2,100, according to RentCafe, marking a nearly 20% increase year-over-year.
Resort District Hotel
Kam Sang Co. is making progress on its long-planned Nickelodeon-themed hotel elsewhere in the city.
In September, the Garden Grove City Council approved the developer’s plans for a 500-room hotel on a 3.7-acre site along Harbor Boulevard, along the Garden Grove side of the Anaheim Resort District.
The proposal has been in the works for more than six years. The 23-story project would include a 600-seat theater, a lazy river, a restaurant, arcade, spa and fitness center. It would mark the third Nickelodeon resort following openings in the Dominican Republic and Mexico.
The vacant parcel at 12301 Harbor Boulevard is currently owned by the city.
Reports estimate the project cost to be around $300 million. Construction is expected to begin next year, with delivery by 2027.
