(EDITOR’S NOTE: According to public records, the property sold for $41.5 million, or about $461,111 per unit.)
ORANGE, Calif., Nov. 23, 2022 – Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announced today the sale of Foxborough Apartments, a 90-unit apartment complex in Orange, California. The property was acquired by Advanced Real Estate of Irvine, California.
Advanced Real Estate plans to rebrand the property as ‘Grove House.’ “The name is a nod to the agricultural history of the area, which used to be covered with orange groves,” said Richard Julian, CEO of Advanced. “This is a strategic purchase for us as the property is located one block from a very similar complex we have owned for about 20 years. With this acquisition, we will be able to enjoy operational efficiencies between the two properties.”
Built in 1964 on seven-plus acres, Foxborough is a 23-building, garden-style asset with garage parking, two swimming pools, a fitness center, storage space and a grilling area. Apartments are 1,200 square feet and have wood burning fireplaces, dishwashers, washers, and dryers. As part of the rebranding, Advanced has plans for extensive additions and renovations, including adding central air conditioning, new windows, new cabinetry, flooring, appliances, large fenced-in patios, upgraded landscaping, a modern paint scheme, signage and pool enhancements.
“Perpetually undersupplied with middle-market rental housing, Orange County’s multifamily fundamentals include an average vacancy rate of 2% over the past five years, which is one of the lowest in the Western United States,” said IPA executive managing director Kevin Green.
“Looking ahead, the county is projected to average 3.9% year-over-year rent growth over the next five years while maintaining 3.5% average vacancy.” Green, IPA’s Joseph Grabiec and Greg Harris represented the seller and procured the buyer. “Located in a mature, supply-constrained Orange County submarket, the asset has a unique composition of spacious, single-story, two-bedroom apartments that are comparable to single-family residences,” added Grabiec.
Located 10 minutes from Downtown Anaheim, the property is close to Interstate 5, California State Routes 22, 91, and 57/the Orange Freeway, which give residents access to over 150 million square feet of office space within a 30-minute commute. “Despite the volatility in the capital markets and broader economy, we continue to successfully execute for our clients,” added Green.
The property is less than two miles from the recently approved ocV!BE, a $4 billion redevelopment around the Honda Center, home to the Anaheim Ducks professional hockey team. ocV!BE is one of the largest privately funded mixed-use developments in the country and will include housing, office, hotels, parks and entertainment venues. “The project will greatly benefit the property as hundreds of workers will need residency nearby,” noted Julian.