OC Apartment Brokers
SoCal Multifamily Sales Pulse - September 19, 2021 - September 25, 2021
Disclaimer: All information contained herein is obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only. We make no claim(s) as to the accuracy or reliability of the information presented. If you wish for us to analyze your specific property or situation please feel free to call or email us anytime.
Here's What's Happening In The Market, Here’s What This Means For You
Santa Ana Approves Rent Control, Other Tenant Protections, After Emotional Debate
Rent control and eviction protections in Santa Ana got the green light from the City Council early Wednesday, a decision that could make the city the first in Orange County to cap rents for older apartment buildings.
The council voted 4-3 to approve ordinances and other measures that, upon final approval, will:
• Cap rents at 3 % annually or 80 % of inflation, whichever is less, for buildings built in 1995 or earlier and for mobile home parks established in 1990 or earlier;
• Limit when landlords can force tenants out by enacting “just cause evictions,” covering tenants who have lived in the home for at least 30 days. The law will have the landlord provide the eviction notice in the language the owner and tenant used to negotiate the lease;
• Set aside $300,000 from pandemic relief money to create an “eviction defense fund” and hire a consultant who will act as a bridge until the city creates a new rent control board and a rent registry for apartments;
If you're an apartment building owner in Santa Ana these new rent control policies are something you need to be aware of. Even if you don't own an apartment building in Santa Ana this is something to be concerned about because other cities may adopt the same or similar policies.
Orange County
Orange County multifamily had only 6 Closed Sales Last Week. Orange County hasn’t had this low of the number of closed sales since there were 7 closed sales back in the week of August 15-21. Orange County usually averages around 12-16 closed sales per week. Orange County has seen a drop in the number of closed sales for the last 3 weeks. The Closed Sales - Average Days on Market was 24 days. This is typical for average days on market for Orange County. Half or 3 of last week's closed sales were Transactions Sold At or Above The Asking Price.
Orange County’s SALE OF THE WEEK is a triplex on Costa Mesa St. in Costa Mesa. This property had never been on the market previously and was being offered for sale by the original builder’s family. The property was listed for $1,600,000 and sold for $1,681.875 in 45 days. Built in 1956 the units consisted of two 2 bedroom 1 baths and one 1 bedroom 1 bath. The property sold for $715 per sq. ft. The Orange County average price per sq. ft. is $651. There was a significant upside in the rents of approx. 35-45%. The seller carried the first Trust Deed for the buyer.
Looking at Orange County listing inventory, Orange County had 11 New Listings Last Week. This is fewer than normal as Orange County typically averages around 13-16 new listings each week. The Total Number of Active Listings dropped to 131 total listings. This is the lowest number of listings for Orange County in several months. The Total Number of Active Listings has been declining each week for the last several months. Active Listings, Dollar Volume dropped to just over $415,000,000. This is the lowest Active Listings, Dollar Volume since March 2018.
List of Closed Sales
Live MLS Link SALE OF THE WEEK
Southern California
Long Beach multifamily had 8 Closed Sales Last Week. This would be considered an average number of weekly closed sales for Long Beach. The Closed Sales - Average Days on Market was 37 days. This is also about average for Long Beach for Closed Sales - Average Days on Market. 7 of the 8 Closed Sales Last Week were Transactions Sold At or Above The Asking Price. So, a lot of competitive bidding last week for Long Beach multifamily.
This week’s SALE OF THE WEEK for Long Beach is a 4 plex on Esperanza Ave. The property was listed at $1,500,000 and sold for $1,555,000 all cash, in 25 days. The property is located in the Alamitos Beach area. It’s also located a few blocks from Downtown Long Beach and two blocks from the beach. The property was built in 1925. The units were all 1 bedroom 1 bath. The property has beautiful original hardwood floors, tiled fireplaces, wood built-ins, and aesthetic period detailing. The owner meticulously maintained the property's features and recently installed copper plumbing throughout the building as well as a large portion of new windows. The property sold for $425 per sq. ft. The average price per sq. ft. in Long Beach is $513. The gross rent multiplier was 17.7 and the cap rate was 3.95%.
The Long Beach listing inventory had 4 New Listings Last Week. This is the lowest number of weekly new listings for Long Beach since there were just 5 new listings the week of July 18-24. The Total Number of Active Listings dropped to 88 listings. This is the lowest Total Number of Active Listings since December of 2019. The Active Listings, Dollar Volume dropped to just under $233,000,000. This is the lowest Active Listings, Dollar Volume since December of 2019.
List of Closed Sales
Live MLS Link SALE OF THE WEEK