The property was owned by the same entity for 20 years, making this the first time it was listed for sale
NEWPORT BEACH, CALIFORNIA (January 5, 2022) – NorthMarq’s Shane Shafer, managing director, and Quinn Breslin, associate – Newport Beach, completed the sale of Fullerton Hills in Fullerton, California. The apartment complex, located in the affluent Sunny Hills neighborhood and five miles from Cal St. Fullerton, contains 168 units and has quick access to the I-5, CA-91, CA-57, providing quick connections to multiple job markets.
“The buyer recognized the outstanding location and enormous potential of the asset,” said Shafer. “It is rare to see a 100+ unit apartment sell in this area.”
Sunny Hills has an average income of $138,000 and one of the top 3 school districts in Orange County, which resulted in tremendous activity for this property during the marketing period.
Fullerton Hills was owned by the same entity for more than 20 years and this was the first time the property has been listed for sale. Fullerton Hills was meticulously maintained over the years, and its location made it highly coveted by both institutional and private capital investors.
A recovering labor market in Orange County has driven vacancies lower and caused rents to spike. The current 3.4 percent vacancy rate is the lowest figure in the market since early 2017. Rents have spiked as a result, with year over year asking rents up 11.6 percent in Orange County. Multifamily investment activity surged in 2022 and increased activity is likely in the next few quarters as well, as investor’s appetites for high-performing properties have compressed cap rates to record lows.
Fullerton Hills, a thirteen-building property constructed in 1973, features a mix of one-, two-, and three-bedroom units. Amenities include a playground, swimming pool, and on-site laundry facilities. The buyer plans to institute a major renovation program to enhance the property’s amenity package and take advantage of the area’s exceptional market fundamentals.