Marcus & Millichap’s Azzi Group Handles Sale of Section 8 Housing on Catalina Island

Marcus & Millichap closed the sale of Tremont Street Apartments, a 62-unit multifamily property located in Avalon on Santa Catalina Island. The property sold for $8.64 million or $139,419 per unit.

“Affordable housing transactions often require coordination among multiple parties, and this sale was particularly complex due to the ground lease, HUD approval, HAP contract assignment and Freddie Mac loan assumption,” said Arteen Zahiri, associate director investments. “Successfully navigating each of those components allowed the transaction to close while preserving 62 units of affordable housing for the Avalon community.”

Zahiri and Tony Azzi, both members of the Azzi Group in Marcus & Millichap’s Los Angeles office, marketed the property on behalf of the seller, Black Rose Catalina L.P. They also procured the buyer, Tailwind Investment Group.

The property is situated on 1.42 acres and consists of five two-story buildings at 321 Tremont St. in Avalon on Santa Catalina Island. Built in 1983, it operates under a Section 8 Housing Assistance Payments contract and is subject to a ground lease with the Santa Catalina Island Company through 2053.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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