66-Unit Newport Beach Apartment Community Sells For $30.5M

In what brokers said was a rare find, a subsidiary of Waterford Property Co. has acquired an assemblage of multifamily properties in Newport Beach for $30.5M.

The Dover Heights Apartment Homes comprise nine individual parcels totaling 66 units on 2.24 acres at Buckingham and Bedford lanes. An undisclosed private investor sold the property to Waterford Residential for $463K/unit.

Kidder Mathews' Steven Brombal and Josh Rhee represented both parties.

Brombal and Rhee said the offering was rare as it is difficult to find a group of multifamily lots this size in the Newport Beach submarket. The two fielded multiple offers for the listing, Brombal said.

“This assemblage is one of, if not the, largest contiguous privately held multifamily portfolios in the city of Newport Beach," Brombal said in a release, adding that the owner had owned the buildings for 27 years. "The amassing of these separate adjacent buildings over 27 years is really historic and unprecedented. We fielded multiple competing offers during the marketing period."

Newport Beach is considered one of the premier coastal communities in California.

As of Jan. 10, the average list price of a home for sale in Newport Beach was $3.7M, according to Reports On Housing, a website that tracks Orange County housing prices. The average rent for an apartment in the area is $2,715, according to RentCafé. 

The Dover Heights Apartment Homes consist of a mix of townhomes featuring one-bedroom and two-bedroom units with one bathroom and two-bedroom, two-bath flats with fireplaces, balconies and private yards.

Waterford plans to renovate the apartment homes and add more common  space, the brokers said.

"The opportunity to acquire an asset of this size and scale in such a high barrier to entry market is remarkable,” Rawson said in a news release.