Crescent Heights Secures $240 Million Multifamily Purchase in Orange County
A Miami-based real estate development firm, Crescent Heights, has finalized a significant transaction in Southern California’s Orange County by acquiring the Skyline at MacArthur Place for $240 million. This deal marks one of the most substantial multifamily transactions in the region’s history, ranking as the fourth most expensive, according to reports from CoStar.
Details of the Acquisition
The property, which consists of two 25-story luxury residential towers located in Santa Ana, comprises 350 units. Leading the acquisition are Crescent Heights principals Sonny Kahn, Russell Galbut, and Bruce Menin.
Return on Investment for Essex Property Trust
This transaction represents a lucrative return for Essex Property Trust, which initially purchased the site in 2010 for $128 million. Essex, along with a joint venture partner, had converted what were originally intended as for-sale condominiums into rental apartments after the property faced foreclosure due to the housing market downturn. In 2012, Essex also bought out its partner for an additional $85 million.
Trends in the Southern California Market
High-value purchases of luxury multifamily properties have become increasingly prevalent in Southern California. For instance, MG Properties made headlines earlier this year by acquiring a 718-unit development in Downtown San Diego for $304 million, marking a three-way tie for the third-largest sale in the city’s history.
Comparative Market Analysis
Skyline at MacArthur Place’s unit price stands at approximately $686,000. Interestingly, this is lower than a recent small-scale multifamily deal in Los Angeles’ Brentwood neighborhood, where Famh Group paid about $745,000 per unit for the BW complex.
Looking Ahead
As the Southern California real estate market continues to evolve, the appetite for high-end multifamily developments appears strong. The trend of nine-figure transactions suggests a robust demand for luxury living options amidst a competitive market landscape.
Representatives from both Crescent Heights and Essex Property Trust did not provide immediate comments regarding the transaction.