Rent growth across Orange County has continued to increase due to the shortage of available inventory, high home prices and the influx of Millennials into the renter pool, according to CBRE research. As a result, investor demand for multifamily assets remains strong.

Two multifamily properties recently sold in Laguna Beach to separate investors for a total of $9.5 million. The first property located at 1027 N. Coast Highway includes nine ocean-view apartments and eight street-facing retail and office units totaling 10,676 square feet.

The property is situated several blocks off the beach and within minutes of downtown Laguna Beach.  The mixed-use building sold for $5.95 million to a private investor.

Dan Blackwell and Mike O’Neill with CBRE represented the seller, a family partnership, in both transactions.

“We generated a full-price offer within 24 hours of marketing the property for sale,” said Blackwell. “That is indicative of the strong demand for prime coastal assets in Orange County.”

The second property located at 340 Cypress Dr. sold for $3.55 million or $591,667 per unit. CBRE also represented the 1031-exchange buyer in the transaction.

“This was the first time in over 40 years that the property had been on the market and we generated four offers within 48 hours of marketing the property for sale,” said Blackwell. “These two transactions mark our team’s 13th and 14th property sale in Laguna Beach in the past three years, the most of any brokerage team in Laguna Beach. We continue to see an uptick in the velocity of 1031 exchanges as investors weigh the possibility that tax-deferred trades could change in the future. We are working with sellers and buyers in sourcing new acquisition opportunities as they trade out of their existing properties.”