Two Investors Pay $90M for Apartment Complexes in Suburban SoCal
By Greg Cornfield November 24, 2021 3:10 pm
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More investors and developers are targeting the suburban multifamily markets around Los Angeles as a record number of families relocate there following the pandemic.
Marcus & Millichap (MMI) announced that Interstate Equities Corporation paid $39.75 million for the 119-unit Ocean Villas in the town of Oxnard in Ventura County. And last week, CGI+ Real Estate Strategies announced it paid $50.7 million for a 170-unit Alturas community in the same town.
Both developments were completed in 1965, and the new owners separately plan to renovate old units.
CGI+ said it was its second suburban purchase in the last 11 months. The acquisition is part of its strategy during and coming out of the pandemic to take advantage of the migration patterns and strong demand for suburban apartments with proximity to major cities.
“During the pandemic, suburban markets like Oxnard have experienced a strong influx of new residents from people exiting cities in search of more space and a more affordable lifestyle,” CGI+’s executive vice president Andre Soroudi said in a statement. “The population growth in Ventura County is creating growing demand for quality rental housing, especially in Oxnard where over the past two years the price of single-family homes has increased by more than 20 percent, keeping a large majority from being able to buy.”
“Ventura County has the second-highest annual median household income of all Southern California counties and a limited multi-housing supply due to strict development regulations,” Marcus & Millichap’s Joseph Grabiec said. “This combination has resulted in strong multifamily operations year after year.”
Grabiec, Kevin Green and Greg Harris with Institutional Property Advisors, a division of Marcus & Millichap, represented the seller of Ocean Villas, Montgomery Partners, and secured the buyer.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
