Park Plaza Fetches $42M

SANTA ANA, CA-A Southern California investment group doing business as the Advanced Group LLC has purchased the 242-unit Park Plaza Apartments in the South Coast Metro area from a Boca Raton, FL-based partnership for $42 million, according to Marcus & Millichap. The firm reports that 20 prospective buyers toured the complex and 10 made offers.

Martin Ensbury and Stewart Weston of the Long Beach office of Marcus & Millichap, who brokered the sale on behalf of the seller and also secured the buyer, report that the property sold for $5 million more than an original, unsolicited offer, after which they convinced the seller to list the property at $42 million.The Park Plaza Apartments is located at 805 W. Stevens Ave. and consists of 215,172 rentable sf on approximately 10 acres. The complex was constructed in 1972 and has undergone interior renovations since 1995 and exterior renovations since 2003. The unit mix consists of 210 two-bedroom and 32 three-bedroom apartments, ranging in size from 830 sf to 1,020 sf. The Park Plaza was one of two significant transactions in Orange County and the Inland Empire reported recently by Marcus & Millichap, which also brokered the sale of the Ascot Park Apartments in San Bernardino for nearly $11.8 million at a cap rate of just under 5.8%. The transaction was brokered by Alexander Garcia in the firm’s Ontario office of a Southern California-based investment partnership. Marcus & Millichap’s Bruce Rajaee, also based in Ontario, represented the buyer, a Newport Beach-based partnership that acquired the property in a 1031 exchange.Ascot Park Apartments is located near the San Bernardino Airport at 1422 E. 9th St. in the southeast submarket of San Bernardino. The property was constructed in 1985 and includes 160 low-density, garden-style units with 126,016 rentable sf on 7.4 acres. The unit mix includes 40 one-bedroom, 72 two-bedroom and 48 three-bedroom units, ranging in size from 610 sf to 1,007 sf, with rents that range from $485 to $950. The property features a pool, three laundry facilities, a spa, a business center, a playground and secured entry. Occupancy was 95% at the time of the sale.