Stellko Properties has purchased Vio Costa Mesa, an 84-unit community in Costa Mesa, Calif., for $28 million from Sack Properties. Marcus & Millichap represented the 1031 exchange buyer and arranged the sale of a 54-unit property in Westminster, Calif. as part of the exchange. Marcus & Millichap Capital Corp. arranged $14.7 million in financing for the acquisition of Vio Costa Mesa. The debt placement was structured on a nonrecourse basis with four years of interest only and a $2 million post-closing earnout.
Located at 2217 Harbor Blvd., the 1973-built community is near Freeway 55 and Interstate 405, roughly seven miles from downtown Irvine and less than three miles from Newport Beach. Additionally, the John Wayne Airport is situated five miles from the property. The eight-building asset comprises a mix of one- and two-bedroom apartments, averaging 767 square feet and featuring vaulted ceilings. The community is currently under renovation. Communal area amenities include a swimming pool, four laundry facilities, partially covered parking and 84, grade level parking spaces.
“Year-over-year rent growth continues to trend upward in Westside Costa Mesa and the multi-housing stock keeps increasing in value,” said Kurt Hediger, senior associate of Marcus & Millichap, in a prepared statement. “Vio Costa Mesa’s sales price and potential for revenue growth demonstrate the strength of this submarket.”
Marcus & Millichap’s brokerage team included Hediger, Senior Managing Director Tyler Leeson and Vice President of Investments, Matt Kipp. The financing team included Senior Managing Director Michael Derk and Associate Director Nick Gray of Marcus & Millichap Capital Corp.
Image courtesy of Yardi Matrix