COSTA MESA, CA – Red Oak Investments closed on the Baker Street Apartments site in partnership with CityView. “We are delighted to be in partnership with CityView, a premier equity partner with deep experience in both the capital side and the development side,” said Red Oak principal Joe Flanagan. The project is a 240-unit luxury apartment community located on the southwest corner of Baker Street and Pullman Avenue in Costa Mesa, CA. Construction will begin in mid-2015. Once completed, Baker Street Apartments will be one of the first multifamily communities to be built in Costa Mesa in ten years. Thomas P. Moran of Moran & Company’s California office worked with Red Oak to identify a capital partner and close on the 4.17 acre parcel.
“After working hand-in-hand with the city of Costa Mesa for two years to entitle the site, we are very excited to now focus our efforts on breaking ground and seeing this project through to completion,” says Joe Flanagan. “Central Orange County is the job center of the region,” added fellow principal Alex Wong, “and it needs more rental options. We are betting on the fundamentals. We are also betting that we can create a living experience and a neighborhood that is authentic, sustainable, and distinguished from the homogeneous new projects that are being produced in neighboring areas.”
Situated adjacent to the 55 Freeway, and minutes from the 73 Toll Road, Baker Street will place residents within minutes of the nearly 21 million sq. ft. of office space in the nearby Irvine Business Complex and South Coast Metro employment centers. The site is also just one mile from the 2.8 million sq. ft. of retail at South Coast Plaza – the highest grossing mall in the country and half a mile from John Wayne Airport.
“As CityView continues to grow, we look to target housing markets such as Costa Mesa that exhibit high barriers to entry and robust employment fundamentals,” explains Sean Burton, President of CityView. “We are excited to have Red Oak as our partner given their strong local expertise in the market. Jointly, we look forward to creating a transformative project for the community that delivers strong returns to our investors.”
“In our business,” adds Alex Wong, “having a good partner makes all the difference. We are privileged to have CityView as our partner.”
“Joe Flanagan and Alex Wong have achieved tremendous success over the years as multifamily developers in Southern California,” explains Tom Moran. “In the case of Baker Street, they came to us with a very clear vision for how the project would fill a very obvious void within the submarket. Our team was able to help them communicate that vision to the marketplace and identify a capital partner that was both a fit for the project and the Red Oak platform.”
About Red Oak Investments
Red Oak was founded by Alex Wong, who was previously a Partner at Trammell Crow Residential, and Joe Flanagan, the former Director of Acquisitions for Shea Properties. Since the company started in 2005, Red Oak has developed a successful track record of purchasing commercial properties and creating value by re-entitling them for multifamily use. The company’s completed projects include:
The purchase of a office-retail property adjacent to the Bella Terra Mall (in Huntington Beach) which was re-zoned to mixed use and rolled into a joint venture with Archstone;
A zoned mixed use site in Huntington Beach that the Firm contracted to purchase, and then flipped to a larger tax-generating business preferred by the city;
The purchase and re-zoning of an industrial property in Torrance that was sold to a multifamily developer;
The purchase of a residential zoned parking lot near USC that was sold to a neighboring college once entitlements for a student housing project were nearly complete.
CityView is one of the nation's premier institutional investment firms focused on urban real estate, in-city housing, and metropolitan infrastructure. American CityVista, CityView's predecessor, was founded in 2000 by Henry Cisneros, Secretary of the U.S. Department of Housing and Urban Development in President Clinton's Administration. CityView was founded in 2003 and has generated more than $2 billion in urban investment in 45 communities across the United States.
The company currently manages multiple funds, all focused on urban solutions. Among its largest investors are pension systems for employees of the State of California (CalPERS), the City of Los Angeles (LACERS), the County of Los Angeles (LACERA), and the Los Angeles Fire and Police Plan (LAFPP). Combined, CityView’s three funds have invested in more than 20 metropolitan areas in 13 states across the country.
About Moran & Company
Moran & Company (“Moran”) is the nation’s premier multifamily brokerage firm. It focuses all of its energies on multifamily assets and mixed-use assets with significant multifamily components. Led by nine regional partners, Moran’s brokerage team leverages its apartment and capital markets expertise with its extensive network of relationships to execute complex sale and capitalization assignments. While investment sales account for the majority of the Company’s transaction volume, Moran also assists owners with the sale of land entitled for the development of new apartment properties and assists developers in sourcing joint venture equity. Moran is often retained for its extensive experience with pre-sales or early sales as well.