Tustin Apartments Sell For Record $163.55M
In a record-breaking deal, Tustin's eaves by Avalon just sold to Laguna Niguel's Raintree Partners for $163.55M, or more than $260k/unit.
AvalonBay sold the 628-unit apartment community.
The price tag is the largest for a single asset market-rate sale in Orange County in the past five years.
Berkadia’s Joe Leon and Dean Zander repped the seller, to whom they sold the building in 2010, according to GlobeSt.
Bisnow recently caught up with Dean. He tells Bisnow the price shows the strength of the market. It also shows optimism "rents will continue to climb as more high-paying jobs are created," he says.
Average-priced houses in neighboring Tustin Legacy and Tustin Ranch are around $1M.
Not only is renting more attractive to many residents, but eaves by Avalon also "offers more amenity space" and is "several hundred dollars" cheaper than some of the nearby properties, according to Dean.
Raintree Partners paid "a very fair price, considering the location, amenities, unit mix, upside potential and debt structure," Dean says.
The property was built in phases more than 40 years ago and borders Irvine. [GS]