A 13-unit multifamily property at 553 and 555 Victoria Street in Costa Mesa sold for $8.6M, achieving the highest price per unit for a multifamily property in Westside Costa Mesa in the past 18 months.
Property: 13-unit property in Costa Mesa, Calif.
Price: $8.6M
Seller: Costa Mesa-based private seller
Buyer: Huntington Beach-based private buyer
“The per-unit sale price of $661,538 set a new benchmark in the city, reflecting the strong investor appetite for premium properties in desirable coastal locations,” said Mike O’Neill, SVP at CBRE, who represented the seller.
Located on a 0.8-acre lot, the property contains 10 buildings with 13,712 s.f. of rentable space. It features eight two-bedroom cottages, built in 1962, and five three-bedroom townhomes, built in 1990. Recent upgrades include 50-year roofs, copper plumbing, new concrete driveways and 50-year exterior walls.
“What made this asset stand out was that it had not been on the market for over 47 years. This provided a unique opportunity to acquire a well-maintained property with recent upgrades, like new roofs and plumbing, which reduced the need for immediate capital expenditures,” said Dan Blackwell, EVP at CBRE.
The property’s location, rental demand and embedded value made it a strong acquisition opportunity.
“The property’s current rents were about 15% below market, providing a clear path to significantly increasing the cash flow,” said Blackwell. “Additionally, the oversized rear garage presented a unique opportunity to add an accessory dwelling unit, further boosting the property’s income potential and overall value.”
The deal did not come without challenges.
“The most significant challenge was structuring a deal that would satisfy both the seller and the buyer’s unique needs,” said Blackwell. “The deal was creatively structured with seller financing, which was key to unlocking a strong sales price and achieving this record-breaking outcome for our client.”
“On the buyer’s side, they were operating on a strict timeline due to a 1031 exchange. We were incredibly focused and proactive, working efficiently to not only meet the buyer’s deadline but to close the deal in just 28 days.”
The property generated eight competitive offers, sold for 98% of the list price and the transaction closed in 28 days to accommodate the buyer’s unique requirements.
