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Suburban California Apartment Sale Shows Confidence In Market Hurt By Rising Interest Rates

Sale/Acquisition of the Year for Orange County
The 264-unit apartment complex in Santa Ana, California, sold for $102.9 million in 2023, making it one of the largest real estate transactions last year. (CoStar)
The 264-unit apartment complex in Santa Ana, California, sold for $102.9 million in 2023, making it one of the largest real estate transactions last year. (CoStar)
CoStar News
March 27, 2024 | 11:00 AM

A Los Angeles apartment investment firm injected confidence in the investment sales market last year in Orange County after buying a significant apartment property despite rising interest rates.

TruAmerica bought the 264-unit apartment complex at 1901 E. 1st St. in Santa Ana, California, for $102.9 million, or about $389,000 per unit. The transaction was significant enough that a panel of local industry professionals judged it worthy of a 2024 CoStar Impact Award.

The deal was the fourth-biggest apartment transaction in terms of total price in Orange County in 2024, according to CoStar data. And the transaction arrived as rising interest rates challenged larger real estate deals, making this type of nine-figure sale rare in the region.

The seller was Newport Beach-based Cadigan Communities.

About the deal: Northmarq won the right to market the apartment community, known as Nineteen01, after suggesting the value of the building was far higher than rivals had estimated.

What the judges said: "This was a challenging year for financing. They overcame many obstacles and are providing a best-in-class property to the community," wrote Eileen Doody,  senior vice president of healthcare services for Avison Young. Added Jim Davis, senior vice president of leasing for Irvine Co., "Size of the deal and the marketing to create the buzz allowed for this asset to capture a big number."

They made it happen: Northmarq's Senior Vice President of Investment Sales Peter Hauser and Managing Director Shane Shafer were involved in the deal.

CoStar Market Manager Amanda Fender contributed.

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