Orange County Community Trades for $17M
- May 03, 2017
California Landmark Group has acquired The Windmill Apartments, a 186-unit community located in Westminster, Calif. The property is encumbered by a ground lease with approximately 29 years remaining on the term, with no options to extend. The asset traded for $17.2 million, or $92,473 per unit.
Ken Morgan, partner & founder of Morgan Skenderian, and Peter Gillin, associate of the company, represented both California Landmark Group and the seller, a Riverdale-based private owner, in the transaction that completed within 45 days of executing the purchase agreement.
The Windmill Apartments is located on a 8.6-acre site at 15400 Belgrade St., approximately 3 miles from Interstate 405 and within walking distance from the Little Saigon neighborhood of Westminster, which includes a variety of shopping and dining options. The community built in 1973 is comprised of 22 two-story buildings that offer studios, one-bedroom and two-bedroom floor plans. Amenities include a large community center, pool and spa, two tennis courts, three laundry facilities, ample covered parking and multiple community barbecue locations.
According to Yardi Matrix data, the property became subject to a $2.6 million loan held by First Foundation Bank in 2015, with variable interest. The community has an occupancy rate of 99.5 percent.
California Landmark was formed in 1988 and acquires, rehabilitates and develops real estate primarily in Southern California. The Windmill Apartments is the company’s first Orange County asset.
“We were originally attracted to this deal because of its size, location, and quality of construction; the short ground lease term created an added challenge that we don’t normally see, but we’re excited we found a way to put this deal together and close within the required timeframe. CLG prides itself on being able to think outside the box and is actively seeking similar acquisitions within this marketplace,” said Bo Drake, vice president of acquisitions for California Landmark Group, in a prepared statement.
Image courtesy of California Landmark Group