A 768-unit apartment complex in Anaheim has traded hands for a record-setting $283.5 million, in the largest reported single-property real estate sale in Orange County since the onset of the pandemic.
Records indicate an affiliate of Utah-based Bridge Investment Group Holdings Inc. (NYSE: BRDG) paid nearly $369,000 per unit for the Madison Park apartments, a 615,500-square-foot rental complex at the intersection of Broadway and Brookhurst Street, near the Disneyland Resort area.
The price is more than twice the amount paid in its prior sale in 2015.
The deal is a multifamily record for Orange County in over a decade by total price; the prior top sale occurred with the $205.5 million sale of the 400-unit Bryant at Yorba Linda complex at the start of this year.
Madison Park was about 97% occupied during its time of sale last month, according to data from real estate market tracker CoStar Group.
The low-rise, garden-style complex was built in 1970 on a nearly 18-acre lot at 2235 W. Broadway, about a 10-minute drive from Disneyland.
It is the largest apartment complex in the city of Anaheim by unit count.
Units in the three-story buildings range in size from 390-square-foot studios to two-bedroom units spanning about 1,000 square feet. Average asking rents range from $1,791 to $2,660. Amenities include a fitness center, pool, theater and other common areas.
The average rent for a two-bedroom apartment in the city jumped 21% over the past month to $2,665, according to market tracker Zumper.com.
Demand for the multifamily sector has surged during the pandemic, as renters rethought their living spaces during the shutdown and investors flocked to the lucrative property type. That trend has been exacerbated in California, as the state continues to face a supply-demand imbalance that’s helped send pricing to record levels.
Last month’s sales price of the Madison Park apartments marks a 132% premium over the reported $122 million that a venture between San Diego-based MG Properties and Boston-based investment adviser Intercontinental Real Estate Corp. paid for the complex in 2015.
MG Properties’ sale of the Anaheim complex follows a notable acquisition in May, when it paid $130 million for the recently built The Herald, a 215-unit apartment project in Placentia.
Newport Beach-based Lyon Living sold the property for $605,000 per unit, tops this year on a per-unit price among multifamily projects in Orange County running at least 100 units.
Only two apartment complexes have sold above $200 million in Orange County over the past decade, according to CoStar Group records, Madison Park and the Bryant at Yorba Linda complex.
The recent sale is also tops for all local real estate deals during the pandemic, records indicate.
Salt Lake City-based Bridge Property Management, the apartment property management affiliate of Bridge Investment Group, now counts over 1,800 apartment units across four properties in its Orange County portfolio.
It took out a nearly $204 million loan with Berkadia Commercial Mortgage to finance the Anaheim purchase, records indicate.
It’s the second local acquisition over the past year for the private investor, which paid $68.9 million for a 168-unit apartment complex in Fullerton at the end of 2021.
Fullerton Hills, situated on over 10 acres in the Sunny Hills neighborhood about 5 miles from California State University, Fullerton, was built in 1973 and sold for about $410,000 per unit. It was 98% occupied at the time of sale.
Bridge Property also owns the 402-unit Crystal View apartments in Garden Grove, which it acquired in 2019; and the 500-unit Warwick Square complex in Santa Ana, the company’s first local asset, records indicate.
The company has properties in more than 20 states across the country.