By Alexandra Pacurar
Tustin, Calif.—Berkadia announced the sale of Eaves by Avalon for $164 million, the largest price for a single asset market rate transaction in Orange County over the last five years. The 628-home community was sold by AvalonBay Communities Inc., represented by Berkadia, to Raintree Partners of Laguna Niguel, Calif. for $260,000 per unit.
The transaction was brokered by Dean Zander, senior managing director of Berkadia’s Los Angeles office and Joe Leon, managing director of the Irvine office. This is the third time in the last decade that this team has sold the property located at 13921 Tustin East Drive, in a neighborhood bordering Irvine and Tustin Ranch.
“With planned interior upgrades, the buyer will achieve a significant premium over the current rental rates, and still remain at rates below the newer competitive set nearby,” Joe Leon said in a prepared statement.
The community spans across 26 acres and common amenities include swimming pools, spas, two regulation tennis courts, fitness center, and a large clubhouse. According to the Yardi Matrix residential report, occupancy at Eaves by Avalon in Tustin is 97.3 percent. “The immediate neighborhood is considered an affordable alternative to the Irvine market, and Tustin has enjoyed recent average market rent increases above 6 percent while still maintaining one of the lowest vacancy rates in Orange County at just 3.7 percent,” Dean Zander said.
Completed in 1972, the property includes studios, one-, two- and three-bedroom apartments, while average monthly rent is $1,776, showing a year-over-year increase. Each home features in-suite washer/dryers and many include a private garage or patio space.
Eaves by Avalon offers easy access to Interstate Route 5 and to over half a million jobs in Orange County. Disneyland, South Coast Plaza and John Wayne Airport are also located nearby.
Image courtesy of Yardi Matrix