Equity Residential Sells SoCal Multifamily Asset for $127M
By Greg Cornfield January 18, 2024 3:40 pm
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Equity Residential (EQR), one of the largest apartment landlords in Southern California, has unloaded a multifamily community in Orange County.
The Chicago-based real estate investment trust sold the 310-unit Regency Palms in Huntington Beach for $127 million, almost $410,000 per unit.
The Mogharebi Group (TMG) announced the deal Wednesday but declined to disclose the name of the buyer or the seller. Property records show it was owned by Equity Residential, and The Real Deal reported Thursday that the buyer was an entity tied to Alan Bernard Dauger, co-founder of A&M Properties. Equity Residential did not return CO’s request for comment.
“Private investors are taking advantage of a period of buyer hesitation, with institutional capital either remaining on the sidelines or showing constraint in acquisition valuations,” Brett Bayless, TMG’s senior vice president, said in a statement.
Costa Mesa-based TMG called it one of the largest multifamily transactions in Orange County over the last 12 months. The gated property at 6761 Warner Avenue, approximately 2.5 miles from the coast, includes one- and two-bedroom apartments in two-story residential buildings on a 14-acre site. The property features three swimming pools, outdoor grilling areas and a laundry facility.
TMG’s Bayless, Bryan LaBar and Nick Earl arranged the deal.
“Today’s market dislocation is creating an opportunity for private investors with a longer, often multigenerational investment horizon and deeper knowledge of local submarkets,” LaBar said. “Transactions such as these can be the early signs of a stabilizing market, and an indication of the long-term demand for Southern California assets.”
Equity Residential is the second-largest multifamily landlord in Los Angeles and Orange counties and the Inland Empire, with more than 18,000 units, second to the massive Irvine Company. In November, Equity sold a 280-unit multifamily property in Los Angeles’ San Fernando Valley for $106.5 million, or just over $380,000 per unit.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
