(EDITOR’S NOTE: According to public records, the property was sold for $25.2 million. The sale closed in early July but only recently recorded.)
Los Angeles –– CBRE announced the sale of four parcels totaling 4.07 acres in Huntington Beach, Calif. Dolphin Partners sold the property to a joint venture between North America Sekisui House (NASH) and Holland Partner Group, an active owner, developer, and operator of luxury multifamily properties throughout the Western United States.
CBRE’s Stewart Weston, Dean Zander, and Greg Sullivan brokered the deal.
The property is located at 18700 Delaware at a high-profile location east of Main Street stretching between Florida Street and Delaware Street. It presents a rare, coastal Orange County development opportunity in a high barrier-to-entry location. The site is convenient to the I-405 Freeway and minutes from an array of amenities, including H.B. Main Street, Bella Terra, Pacific City, South Coast Plaza, and SOCO & The OC Mix.
The site is designated as one of only six Regional Housing Need Allocation (RHNA) sites in the city, allowing for potential development. Additionally, the property is located in a recently approved “Affordable Housing Overlay” within the Beach and Edinger Corridors Specific Plan (BECSP), and, per an 2013-2021 Housing Element Amendment, allows development of the site, by right, with a 20 percent affordable component.
“Since the property is designated as a site to meet RHNA goals, it benefits from a potential ‘by right’ review process and can possibly qualify for density bonus and other development incentives,” said Mr. Weston, an executive vice president at CBRE.
Known as “Surf City USA,” Huntington Beach has over 10 miles of uninterrupted coastline that brings in over 11 million visitors annually. The demographics for the immediate area surrounding the subject property are $147,000 in average household income and $1.3 million in average single family home value.
“The buyers are well-suited to take advantage of the dearth of high-end multifamily housing in the city,” said Mr. Zander, an executive vice president at CBRE. “There are approximately 65 persons for every Class A multifamily unit in Huntington Beach, exemplifying the need for Class A product.”
“CBRE’s strong focus in the submarket and experience with land development transactions allowed us to navigate several challenges including expiring Reciprocal Parking Agreements and an affordable housing requirement that was lower than market norms for similar projects,” said Mr. Sullivan, a first vice president at CBRE.
The seller, Dolphin Partners, Inc., is a long-time owner-operator of commercial real estate assets based out of Orange County, Calif.