By Evelyn Jozsa
Interstate Equities Corp. has purchased Surf at 39, a 400-unit, value-add property in Huntington Beach, Calif., for $134 million. The acquisition was on behalf of the firm’s IEC Institutional Fund III LP, a fully discretionary, $200 million commingled fund targeting value-add multifamily investments throughout coastal California.
The property, located at 16761 Viewpoint Lane, is less than two miles from the 405 Freeway, and 10 miles from John Wayne Airport. Originally constructed in 1972, Surf at 39 comprises two- and three-bedroom apartments and townhomes, and features community amenities such as:
- swimming pools with spas
- fully equipped business center
- fitness facility
- dog park
- barbecue area
The buyer plans to renovate the property, with the intention of keeping it as a workforce housing community.
“We are not moving the renovation spec to a Class A standard. Currently, approximately 80 percent of the units are in their original condition. The units are functional, but we will upgrade them in order to meet tenant needs, while retaining the property’s position as the best value for the dollar in its class,” said Marshall Boyd, co-president & chief investment officer of IEC, in prepared remarks.
In another recent deal, the company acquired Verse La Mesa, a 133-unit, value-add multifamily community in San Diego.
Image courtesy of IEC