In a significant move within the Southern California real estate market, Equity Residential, a leading apartment landlord, has completed the sale of a multifamily community in Orange County. The sale of the Regency Palms in Huntington Beach marks a notable transaction in the region, with the property fetching $127 million, or close to $410,000 per unit.
The Regency Palms, comprising 310 units, was acquired by an entity linked to Alan Bernard Dauger, co-founder of A&M Properties, according to a report in the Commercial Observer. The Mogharebi Group (TMG) acted as the broker on the sale.
The sale of Regency Palms is indicative of the current market trends, where private investors are stepping in to capitalize on a period marked by hesitancy among institutional buyers. “Private investors are taking advantage of a period of buyer hesitation, with institutional capital either remaining on the sidelines or showing constraint in acquisition valuations,” said Brett Bayless, TMG’s senior vice president, in a statement.
“Today’s market dislocation is creating an opportunity for private investors with a longer, often multigenerational, investment horizon and deeper knowledge of local submarkets,” added Bryan LaBar, vice president of TMG. “Transactions such as these can be the early signs of a stabilizing market, and an indication of the long-term demand for Southern California assets.”
Located at 6761 Warner Avenue and about 2.5 miles from the coast, the Regency Palms is a gated community offering one- and two-bedroom apartments. The property, spread over 14 acres, boasts amenities like three swimming pools, outdoor grilling areas, and a laundry facility. TMG’s Bayless, Bryan LaBar, and Nick Earl worked on orchestrating this transaction.
Equity Residential is a prominent player in the Southern California multifamily market, owning over 18,000 units and ranking second only to the Irvine Company in the Los Angeles, Orange County, and Inland Empire regions. This sale follows another disposition that Equity Residential executed in November. This was the 280-unit Summerset Village, a multifamily community located in Chatsworth, which IMT Residential purchased for $106.5 million, or around $380,357 per unit.
The Regency Palms deal stands out as one of the largest multifamily transactions in Orange County over the past year, possibly signaling both a shift in the investor landscape and a robust interest in Southern California’s multifamily real estate sector.
