Crescent Heights Completes Major $240 Million Deal in Orange County
A notable acquisition in the Southern California real estate landscape has occurred, as the Miami development and investment firm, Crescent Heights, finalized the purchase of Skyline at MacArthur Place for an impressive $240 million. This transaction marks one of the most substantial multifamily property deals within Orange County’s history.
Details of the Acquisition
Crescent Heights, led by executives Sonny Kahn, Russell Galbut, and Bruce Menin, acquired this high-rise complex comprised of two 25-story residential towers located in Santa Ana. The sale, involving 350 luxury residential units, stands as the fourth-highest multifamily trade in Orange County to date, as reported by CoStar.
Essex Property Trust’s Profit
For Essex Property Trust, the deal represents a favorable financial outcome. The real estate investment trust (REIT) originally purchased the property for $128 million back in 2010 alongside a joint venture partner. Initially developed by Nexus Development as condominium units, the property encountered financial difficulties and transitioned to an apartment complex after Essex acquired complete ownership in 2012 for $85 million.
The Changing Landscape of Multifamily Real Estate
High-value deals for luxury multifamily residences are increasingly common in Southern California. For instance, MG Properties made headlines in February by acquiring a 718-unit complex in Downtown San Diego from Greystar for $304 million, claiming the title for the third-largest sale in the city’s recorded history. Additionally, Essex Property Trust completed another notable sale in March, unloading the 257-unit Highridge Apartments in Rancho Palos Verdes for $127 million to the Bascom Group.
Price Analysis and Market Comparison
The price per unit for Skyline at MacArthur Place, which stands at approximately $686,000, is less than the recent record set in Los Angeles’ Brentwood neighborhood. The Famh Group notably paid $58.1 million for a smaller property on BW complex, resulting in a striking cost of $745,000 per unit, marking the highest unit price for a multifamily building in L.A. in over three years, according to broker statements.
Looking Ahead
As the market for luxury multifamily properties continues to evolve, observers will be keen to see how these significant investments shape the Southern California real estate landscape. While representatives from both Crescent Heights and Essex have yet to comment on the transaction, the implications of such high-stake deals echo throughout the industry.
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