Essex Sells Orange County Asset for $240M

Essex Property Trust has sold Essex Skyline at MacArthur Place, a two-building, 350-unit community in Santa Ana, Calif., for $239.6 million.

Skyline came online in 2008 as a condominium property. Two years later, an Essex joint venture paid $128 million for the asset, converting it to multifamily. In 2012, Essex purchased the partner’s share for $85 million, assuming full ownership.

Rising 25 stories at 15 MacArthur Place, Skyline’s two towers are the tallest structures in Santa Ana. The downtown area and John Wayne Airport are some 4 miles away. Several parks can be found within walking distance.

The community encompasses one- and two-bedroom floorplans ranging from 1,018 to 2,312 square feet. Essex Skyline features a gym, business center, swimming pool and media room, among other amenities.

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This deal is the latest in a series of recent dispositions by Essex. Two months ago, the company sold the 255-unit Highridge in Rancho Palos Verdes, Calif., for $127 million. Bascom Group acquired the asset, according to Yardi Matrix data.

Last October, Essex sold its 81.5 percent interest in the 697-unit Hillsdale Garden Apartments for $252.4 million. Ethos Real Estate purchased the property in San Mateo, Calif., and subsequently converted it to affordable housing.

Multifamily investment drops in Orange County

A total of 14 assets bearing 50 or more units sold in Orange County throughout 2024 for a total multifamily transaction volume of $779.5 million, according to Yardi Matrix data. That was 19.4 percent below the $968 million registered in 2023.

Throughout last year, units traded on average for $355,287, the same source shows. Essex Skyline changed hands for $685,000 per unit, nearly doubling that amount. The last asset that commanded a higher price per unit was 580 Anton, which sold for $688,800 per apartment. Rockwood Capital purchased the property from Legacy Partners in 2022.