Santa Ana Apartments Sale Marks High Point of a Slow Year in California’s Orange Countyadmin
Advanced Real Estate Services has paid $63.8 million for Solare Apartments, a 240-unit property in the Orange County city of Santa Ana, California. The transaction is one of the largest of 2020, a year when multifamily sales activity in the region has been quite muted as a result of the coronavirus pandemic.
A private investor sold the 10-building complex at 2111 W. 17th St., according to Advanced Real Estate’s brokerage, Calabasas-based Marcus & Millichap. CoStar records show that the most recent owners were two people who bought Solare Apartments in 2016 for about $60.4 million.
Over 2020 so far, there have been only 12 deals in Orange County that have exceeded $10 million, according to CoStar records. In terms of total dollars paid, the Solare transaction is eclipsed by only one other multifamily deal since Jan. 1, the $195 million sale of two mobile home and RV parks in Huntington Beach. In that instance, the seller was Advanced Real Estate.
“Given the very limited velocity of larger apartment buildings selling in 2020, Solare Apartments represents a rare sale within the Orange County market,” said Tyler Leeson, senior managing director investments in Marcus & Millichap’s Newport Beach office. “The asset is well-positioned for the new ownership to further enhance the property and continue to attract affluent renters to the complex.”
The price Advanced Real Estate, based in Irvine, California, paid for Solare works out to just under $266,000 per unit, significantly less than the average market price in the Santa Ana area and Orange County at large: According to CoStar analytics, the average market price for Santa Ana and its immediate neighbors stands at $341,000 per unit, and $397,000 for Orange County more broadly.
Solare was built in 1987 on the south bank of the Santa Ana River, at the edge of the Riverview Park. It is less than 10 minutes on foot from Santa Ana College, Kindred Hospital and a large shopping center, Bristol Marketplace. Disneyland and Knotts Berry Farm are just a short drive away as well.
The property appears to have been renamed River House at the close of the transaction.