A 768-unit apartment complex in Anaheim traded hands for a record $283.5 million, in the largest real estate sale of a single property reported in Orange County since the pandemic began.
Records indicate a Utah subsidiary 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 Park Region.
The price is more than double the amount paid during its previous sale in 2015.
The deal is a multi-family record for Orange County in more than a decade in terms of total price; the previous best sale was with the sale of $205.5 million of the 400 units Bryant at Yorba Linda complex at the start of the year.
Madison Park was about 97% occupied when it was sold last month, according to data from the real estate market tracker CoStar Group.
The low-rise, garden-style resort was built in 1970 on nearly 18 acres of land at 2235 W. Broadway, about a 10-minute drive from Disneyland.
It is the largest apartment complex in the city of Anaheim by number of units.
Units in the three-story buildings range in size from 390-square-foot studios to two-bedroom units covering approximately 1,000 square feet. Average asking rents range from $1,791 to $2,660. Facilities include a fitness center, swimming pool, theater, and other common areas.
The average rent for a two-bedroom apartment in the city jumped 21% in the past month to $2,665, according to Market Tracker Zumper.com.
Demand for the multi-family sector has increased during the pandemic, as tenants redesigned their living spaces during the shutdown and investors flocked to the lucrative type of property. This trend has been exacerbated in California, as the state continues to deal with a supply-demand imbalance that has helped send prices to record highs.
Last month, the selling price of Madison Park apartments marks a 132% premium to the reported $122 million that a venture between the San Diego-based company MG properties and Boston-based investment advisor Intercontinental Real Estate Company paid for the resort in 2015.
MG Properties’ sale of the Anaheim complex follows a notable acquisition in May, when it paid $130 million for the newly constructed building the heralda 215-unit apartment project in Placentia.
Based in Newport Beach Living in Lyon sold the property for $605,000 per unit, leading this year on unit price among multifamily projects in Orange County running at least 100 units.
Only two apartment complexes have sold more than $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 also tops all local real estate transactions during the pandemic, records show.
Based in Salt Lake City Bridge property managementthe apartment property management subsidiary of Bridge Investment Group, now has more than 1,800 apartments across four properties in its Orange County portfolio.
She took out a loan of nearly $204 million with Berkadia Commercial Mortgage Loan to fund the Anaheim Purchase, records show.
It’s the second local acquisition in the past year for the private investor, which paid $68.9 million for a 168-unit apartment complex in Fullerton in late 2021.
Fullerton Hillslocated on over 10 acres in the Sunny Hills neighborhood approximately 5 miles from California State University, Fullerton, was built in 1973 and sold for around $410,000 a unit. It was 98% occupied at the time of the sale.
Bridge Property also owns the 402 units Crystal clear view apartments in Garden Grove, which she acquired in 2019; and the 500 units Warwick Square complex in Santa Ana, the company’s first local asset, according to the records.
The company has properties in more than 20 states across the country.