Major Multifamily Sale Shapes Santa Barbara County Real Estate
Record Multifamily Asset Sale Announced
In an impressive real estate transaction, Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE:MMI), has finalized the sale of La Vista Apartments, a substantial multifamily property boasting 460 units. This $116 million deal, which translates to approximately $252,174 per unit, marks an important milestone, as it stands as the largest multifamily asset sold in Santa Barbara County, both in terms of unit count and sales price. This record-setting sale underscores the growing demand for quality rental properties in this attractive part of California.
Santa Maria: A Hub of Growth
Joseph Grabiec, IPA's executive managing director of investments, emphasized the dynamic growth of Santa Maria, highlighting its status as the fastest-growing city within Santa Barbara County. Grabiec noted that the population is projected to increase by 27% from 2024 to 2050. Alongside population growth, an average annual rent increase of 4% is expected over the next five years, illustrating the area's escalating housing demand and investment potential.
Attractive Investment Info
Elderly housing developments like La Vista Apartments provide investors with not just an appealing return on investment, but also an opportunity to enhance long-term returns through strategic renovations. According to Kevin Green, an IPA associate, the property allows the new ownership to achieve a solid yield right from the start, while also enhancing rental income by implementing a renovation plan targeting nearly 95% of the units.
Location Advantages and Community Amenities
The La Vista Apartments are strategically located, making them easily accessible via U.S. Route 101 and State Route 135. This prime location is just a short commute from notable establishments such as Vandenberg Space Force Base and Dignity Health Regional Medical Center. Residents will find comprehensive amenities nearby, including retail centers such as the Crossroads at Santa Maria and the Santa Maria Town Center.
Community Features
La Vista Apartments, situated on a 31-acre site constructed in 1979, caters to both comfort and leisure. The community offers features such as two swimming pools, spa facilities, a clubhouse, and expansive courtyards. Residents can enjoy outdoor grilling with Santa Maria-style barbecues, making it a vibrant community space. Each apartment is designed with large closets and fully outfitted kitchens, complete with breakfast bars and ample pantry space. Select units even offer an elevated experience with vaulted ceilings and skylights.
About Institutional Property Advisors (IPA)
As a critical component of Marcus & Millichap (NYSE: MMI), IPA excels in commercial real estate services, offering clients a blend of investment and capital market expertise. This division is equipped with unparalleled technology and comprehensive research capabilities that firmly position them to provide customized investment solutions for buying, selling, and financing institutional properties.
About Marcus & Millichap, Inc.
With a robust presence in the market, Marcus & Millichap, Inc. specializes in the sale, financing, and advisory services in the commercial real estate space. As of the close of 2023, the firm proudly employed 1,783 investment sales professionals across over 80 locations. Notably, the company executed 7,546 transactions with a total sales volume nearing $43.6 billion, showcasing its strong standing in commercial real estate. This level of expertise enables them to effectively navigate the complexities of real estate and deliver optimal outcomes for their clients.
Frequently Asked Questions
What was the sale price of La Vista Apartments?
The La Vista Apartments were sold for $116 million, which is about $252,174 per unit.
Who brokered the sale of La Vista Apartments?
The transaction was brokered by Institutional Property Advisors (IPA), part of Marcus & Millichap.
What impacts the growth in Santa Maria, California?
Santa Maria is expected to see a population increase of 27% by 2050, driving demand for housing in the area.
How many units does La Vista Apartments have?
La Vista Apartments comprises 460 units, making it a significant multifamily asset in the region.
What amenities are included at La Vista Apartments?
The property features two swimming pools, a spa, a clubhouse, and spacious courtyards, creating a community-focused living environment.
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