SoCal Multifamily Sales Pulse - September 19, 2021 - September 25, 2021
Disclaimer: All information contained herein is obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only. We make no claim(s) as to the accuracy or reliability of the information presented. If you wish for us to analyze your specific property or situation please feel free to call or email us anytime.
Here's What's Happening In The Market, Here’s What This Means For You
Santa Ana Approves Rent Control, Other Tenant Protections, After Emotional Debate
Rent control and eviction protections in Santa Ana got the green light from the City Council early Wednesday, a decision that could make the city the first in Orange County to cap rents for older apartment buildings.
The council voted 4-3 to approve ordinances and other measures that, upon final approval, will:
• Cap rents at 3 % annually or 80 % of inflation, whichever is less, for buildings built in 1995 or earlier and for mobile home parks established in 1990 or earlier;
• Limit when landlords can force tenants out by enacting “just cause evictions,” covering tenants who have lived in the home for at least 30 days. The law will have the landlord provide the eviction notice in the language the owner and tenant used to negotiate the lease;
• Set aside $300,000 from pandemic relief money to create an “eviction defense fund” and hire a consultant who will act as a bridge until the city creates a new rent control board and a rent registry for apartments;
If you're an apartment building owner in Santa Ana these new rent control policies are something you need to be aware of. Even if you don't own an apartment building in Santa Ana this is something to be concerned about because other cities may adopt the same or similar policies.
Orange County
Orange County multifamily had only 6 Closed Sales Last Week. Orange County hasn’t had this low of the number of closed sales since there were 7 closed sales back in the week of August 15-21. Orange County usually averages around 12-16 closed sales per week. Orange County has seen a drop in the number of closed sales for the last 3 weeks. The Closed Sales - Average Days on Market was 24 days. This is typical for average days on market for Orange County. Half or 3 of last week's closed sales were Transactions Sold At or Above The Asking Price.
Orange County’s SALE OF THE WEEK is a triplex on Costa Mesa St. in Costa Mesa. This property had never been on the market previously and was being offered for sale by the original builder’s family. The property was listed for $1,600,000 and sold for $1,681.875 in 45 days. Built in 1956 the units consisted of two 2 bedroom 1 baths and one 1 bedroom 1 bath. The property sold for $715 per sq. ft. The Orange County average price per sq. ft. is $651. There was a significant upside in the rents of approx. 35-45%. The seller carried the first Trust Deed for the buyer.
Looking at Orange County listing inventory, Orange County had 11 New Listings Last Week. This is fewer than normal as Orange County typically averages around 13-16 new listings each week. The Total Number of Active Listings dropped to 131 total listings. This is the lowest number of listings for Orange County in several months. The Total Number of Active Listings has been declining each week for the last several months. Active Listings, Dollar Volume dropped to just over $415,000,000. This is the lowest Active Listings, Dollar Volume since March 2018.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version SALE OF THE WEEK
Long Beach
Long Beach multifamily had 8 Closed Sales Last Week. This would be considered an average number of weekly closed sales for Long Beach. The Closed Sales - Average Days on Market was 37 days. This is also about average for Long Beach for Closed Sales - Average Days on Market. 7 of the 8 Closed Sales Last Week were Transactions Sold At or Above The Asking Price. So, a lot of competitive bidding last week for Long Beach multifamily.
This week’s SALE OF THE WEEK for Long Beach is a 4 plex on Esperanza Ave. The property was listed at $1,500,000 and sold for $1,555,000 all cash, in 25 days. The property is located in the Alamitos Beach area. It’s also located a few blocks from Downtown Long Beach and two blocks from the beach. The property was built in 1925. The units were all 1 bedroom 1 bath. The property has beautiful original hardwood floors, tiled fireplaces, wood built-ins, and aesthetic period detailing. The owner meticulously maintained the property's features and recently installed copper plumbing throughout the building as well as a large portion of new windows. The property sold for $425 per sq. ft. The average price per sq. ft. in Long Beach is $513. The gross rent multiplier was 17.7 and the cap rate was 3.95%.
The Long Beach listing inventory had 4 New Listings Last Week. This is the lowest number of weekly new listings for Long Beach since there were just 5 new listings the week of July 18-24. The Total Number of Active Listings dropped to 88 listings. This is the lowest Total Number of Active Listings since December of 2019. The Active Listings, Dollar Volume dropped to just under $233,000,000. This is the lowest Active Listings, Dollar Volume since December of 2019.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version SALE OF THE WEEK
Los Angeles County
Los Angeles County multifamily had 91 Closed Sales Last Week. That’s up from 77 closed sales in the prior week and more in line to with the normal activity of weekly sales for LA County. Closed Sales - Average Days on Market was 34 days. There were 44 of the 91 closed sales that were Transactions That Sold At or Above Asking Price.
The Los angles County SALE OF THE WEEK was a 6 unit building on 82nd Street in Los Angeles. This property was listed for $1,350,000 and sold, all cash for list price in 6 days. The units were all 1 bedroom 1 bath. The property was built in 1987. The property sold for $375 per sq. ft. The average price per sq. ft. in LA County is $505. It sold for 10.8 times gross and the cap rate was 7.3%. The price per unit was $225,000. All really good numbers for the current market.
Los Angeles County listing inventory had 139 New Listings Last Week. This brings the Total Number of Active Listings to 1,761. The Total Number of Active Listings remained below 1,800 for the fifth consecutive week. The Months of Inventory remained at 11 months.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version Sale of the Week
San Diego County
San Diego County multifamily had 20 Closed Sales Last Week. A good strong week of sales for San Diego County. The highest number of weekly closed sales prior to last week was 18 closed sales for the week of August 8-14. San Diego County has seen a steady increase in monthly sales since May of 2020. Closed Sales - Average Days on Market was 28 days. This stat is pretty normal for San Diego County. There were 12 of the 20 Transactions That Sold At or Above Asking Price.
San Diego County multifamily listing inventory had 26 New Listings Last Week. Keeping the Total Number of Active Listings at 180 or above for the second consecutive week but still below 200 total listings. This is where San Diego County's total listings were earlier this year. Months of Inventory remained at 11 months.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
Riverside County
Riverside County multifamily had 10 Closed Sales Last Week. This is a good strong week of sales for Riverside County. Riverside County hasn’t had 10 closed sales in 1 week since the week of June 20-26. Recent closed sales per week in Riverside County had been down to between 3-6 closed sales per week. The Closed Sales - Average Days on Market was 31 days. This is normal for this stat for Riverside County. There were 4 Transactions That Sold At or Above Asking Price. There were 2 transactions that were financed using FHA financing.
Riverside County listing inventory had just 2 New Listings Last Week. Quite a low number of new listings for Riverside County. Riverside County typically averages around 7-10 new listings weekly. The Total Number of Active Listings is now at 87 listings. This is the first time the Total Number of Active Listings has been below 90 since February 2020. Months of Inventory remained at 4 months.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
San Bernardino County
San Bernardino County had 14 Closed Sales Last Week. This is the same number of closed sales as the prior week and a little better than average which is around 10 closed sales per week. Closed Sales - Average Days on Market was 68 days. This stat is a bit inflated due to one property being on the market for 323 days. If we remove this one closed sale the Closed Sales - Average Days on Market drops down to 44 days. Still a bit high but closer to normal which is about 30 days. There were 7 or half of the 14 transactions that were Transactions That Sold At or Above Asking Price.
San Bernardino County listing inventory had 16 New Listings Last Week. Keeping the Total Number of Active Listings above 140 for the third consecutive week at 147 listings. Months of Inventory remained at 7 months. Active Listings, Dollar Volume remained above $211,000,000 for the second consecutive week.
Live MLS and Sale of the Week Link expires in 30 days after published View Live MLS Data View PDF Version
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