FULLERTON, CA-Fifth Street Realty Partners in a JV with Angelo, Gordon & Co. has sold Veranda Apartment Homes—a 128-unit multifamily community at 140 West Hill Ave. in Fullerton, CA to the Bascom Group for $20.4 million. Brett Betzler, a director in the California office of Moran & Co. represented the seller in the transaction. The sale closed February 29, 2012.
“This sale is the culmination of a successful repositioning of an underperforming asset in a supply-constrained Orange County market,” says Jim Brooks, President and CEO of Fifth Street Realty Partners. “We rebranded the property, changed the management company, implemented professional leasing policies, and made a variety of physical improvements. These changes have strengthened the property’s financial performance in a way that has substantially exceeded our investors’ return expectations.”
Given the property’s outstanding location near downtown Fullerton, and given the headroom between its rents and the rents of some of the newer properties in the area, the property offers the buyer the opportunity to build on the foundation laid by Fifth Street Partners by investing additional capital in interior renovations and other improvements.
Built in 1985, the property consists of nine buildings and a subterranean parking garage. The average unit size is 886 square feet. It has a walk score of 85. It is across the street from two of the top shopping centers in Orange County, and less than one mile from Downtown Fullerton and the Fullerton Metrolink Station.