Irvine, Calif. (May 22, 2018) – Casa Del Mar, a 16-unit apartment building located at 147 East 18th Street in Costa Mesa, California, has been purchased by Newport 18th Partners, LLC, a local active syndicator investor and management company, for $6,400,000. The seller was a private trust and the original owner of the property. Kidder Mathews’ multifamily brokers, Steven C. Brombal and Joshua Y. Rhee, represented both parties in the transaction.
The offering represented the first time Casa Del Mar had been on the market. The original owner had not changed in almost 60 years. The property was meticulously maintained and primarily required interior updating to bring it to current renovation standards.
“Because of the long-term ownership, rents were very low and the seller was somewhat forced to carry financing to offer any investor reasonable leverage,” said Brombal. “Through the deal negotiation, the seller offered a 65% loan-to-value at 4% interest for only five years. The sales price equated to $511/square foot and $400,000/unit for a building with 63% one-bedroom, one-bath units,” he said.
“A sale with these fundamentals at this late stage in the multifamily cycle underscores the continued desire of investors for immaculate, well-located coastal assets,” said Rhee.
Brombal has been in contact with the Casa Del Mar ownership for the last 18 years and has listed and sold the adjacent property three times.
“Over the last 18 years, I have brought the seller several offers, but they continued to hold onto the property until the timing was perfect,” said Brombal. “We were able to create seller financing at significantly higher leverage than what the current occupancy and rental rates would support,” he said.
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