REIT Buys Vintage in Orange County
- Jun 08, 2015
Resource Real Estate Opportunity REIT acquired Yorba Linda Apartments in Yorba Linda, Calif., from AvalonBay Communities for $118 million.
The acquisition included 50 two-story buildings consisting of approximately 400,000 net rentable square feet.
“The Yorba Linda Apartments are an extremely well located, value-add opportunity in a high-barriers-to-entry market in Southern California,” Kevin Finkel, Resource Real Estate Opportunity REIT’s president & COO, told Commercial Property Executive. “Resource Real Estate focuses on well-located, value-add opportunities that provide access to the best schools for families that cannot afford the cost of homeownership.”
Located at 25550 River Bend Drive, the Orange County apartments consist of 160 one- and 240 two-bedroom units. The community features numerous interior amenities in addition to a clubhouse, business center, fitness center, two swimming pools, two lighted tennis courts, a playground, and covered parking.
“The property’s fundamentals are very strong,” Finkel added. “Vacancy is less than 4 percent, rent growth is strong, and there is little opportunity for additional multi-family housing to be developed within the immediate area.”
The property, while having been maintained over the years, still appears as 1986 vintage. According to Finkel, the company plans to renovate and upgrade common areas, including the clubhouse, fitness center, sports court and dog park. There will also be upgrades to unit interiors with new appliances, countertops, flooring, cabinets, hardware and lighting.
Yorba Linda is a very desirable submarket in Orange County offering easy access to major highways that link it to the major employment centers within Orange County. The property is located in an affluent area with access to three parks, hiking and biking trails as well as excellent schools that provide the opportunity to offer a fresh rental housing community at a significant discount to homeownership.
The property was 96 percent occupied at the time of the sale.