OXNARD, CA – 5151 Neptune Square in Oxnard, CA, one of the few beachfront multifamily rental properties in Ventura County, has traded for $3.5 million or $500,000 per unit, according to John Battle SIOR, Managing Director of Lee & Associates-LA North/Ventura, who represented the buyer and seller in the transaction along with Lee Associate Matt Benwitt.
The seven-unit apartment building was sold in an off-market transaction that capped a five-year pursuit by the buyer.
“I submitted an offer on behalf of this buyer in 2014, but the owners of the property, private investors, were not interested in selling, Battle said. “Then, this past summer the owner contacted me for assistance with an exchange property because they were considering another offer, and I notified the investor that had put in the offer all those years ago.”
The buyer, Ventura Investment Company, owns several multifamily properties in the area, and understood the unique value of this beachfront property. Constructed in 1974, it had undergone only minor exterior improvements, rents were well below market and all the tenants were on month-to-month leases, offering significant upside to the property.
“The buyer’s offer amounted to a 2.5 percent cap on current income,” said Battle, “and nothing in this market has sold for $500,000 a unit. But the buyer plans extensive interior renovations that will allow for bringing rents up significantly. That, along with the irreplaceable location with ocean views in all the units, provided the rationale for the price paid. And because this buyer owns other properties in the area, tenants who want to stay will have the option of moving into another one of his properties until the renovations are completed.”
Lee & Associates is a commercial real estate brokerage, management and appraisal services firm. Established in 1979, Lee & Associates has grown its service platform to include offices in the United States and Canada. Lee & Associates provides superior market intelligence in office, industrial, retail, investment and appraisal to meet the specialized needs of our clients.