CBRE announced the sales of two six-unit multifamily properties in San Clemente, Calif., to individual private investors, resulting in a combined sale price of $5,545,000.
CBRE’s Executive Vice President Dan Blackwell, First Vice President Mike O’Neill and Associate Amanda Fielder represented both the buyers and the same seller in the two transactions.
In the first transaction, Blackwell, O’Neill and Fielder represented the repeat client investors, a private buyer from San Clemente and the San Diego County-based seller, in the sale of a six-unit, 3,535-square-foot multifamily property at 306 Cazador Lane in San Clemente. The property, which sold for $2,820,000, is situated on a 14,500-square-foot lot, within a half-mile of the beach. The selling price translates to $470,000 per unit and $798 per square foot. The escrow closed in 32 days.
Built in 1951, the multifamily building comprises one-bedroom, single-story units, with the majority featuring private back patio areas. Notably, one unit has a large private deck with ocean views. Four of the six units have been extensively remodeled with new kitchens, bathrooms, flooring, decorative paint and other high-end finishes. New electrical panels were installed during escrow. Additionally, the property benefits from community amenities including five garage spaces and two open parking spaces. Each unit is individually metered for gas and electricity, with its own water heater.
“The acquisition represents a value-add opportunity for the buyer,” Fielder noted. “The buyer can bring rents to market level, achieving a cap rate of 4.50%.”
The property at 306 Cazador Lane is conveniently located within walking distance of the beach, the historic San Clemente Pier, and just a few blocks away from Avenida Del Mar, the city’s downtown area known for its array of shops, dining options and entertainment.
In the second transaction, with the same seller, Blackwell, O’Neill and Fielder represented the repeat buyer, a private buyer from Newport Beach and the San Diego County-based seller, in the sale of a six-unit two-story multifamily property at 239 Avenida Pelayo in San Clemente, for $2,725,000. The property is ideally positioned less than a quarter mile from San Clemente City Beach. The selling price averages $454,167 per unit and $439 per square foot, with both the buyer and seller engaging in a 1031 exchange.
“Our exclusive marketing process generated multiple competitive offers for this desirable coastal property, located just a six-minute walk from the beach, leading to a successful escrow closure in 25 days,” O’Neill noted.
Constructed in 1965 on an 8,004-square-foot lot, the 6,211-square-foot multifamily building features six spacious two-bedroom units.
“All of the units at 239 Avenida Pelayo were vacant at the time of the sale to allow the buyer to achieve market rent immediately upon the execution of a renovation plan,” O’Neill highlighted. “Additionally, there is a pending permit to build an 800-square-foot two-bedroom Accessory Dwelling Unit (ADU) on the property, to increase rental income.”
The front unit has its own private entrance and deck. The community offers residents storage lockers and laundry facilities plus six carport spaces. Gas and electricity are individually metered for each unit, and every unit has its own water heater.
The city of San Clemente is a beach city located in the southernmost part of Orange County bordering San Diego County with a population of over 64,000 residents and an average household income of $181,560 (projected to reach $206,829 by 2028). Its unique geographical location has helped preserve its small-town charm amidst the urban sprawl of Southern California. The city is renowned for its ocean, hills and mountain views, mild climate and Spanish Colonial style architecture, attracting over two million visitors annually.
“The San Clemente market offers multifamily investors a rare blend of coastal charm, robust rental demand, and promising investment potential,” says O’Neill. “With its desirable location and strong demographics, San Clemente presents an excellent opportunity for investors seeking long-term growth and stability in the coastal multifamily sector.”
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has approximately 130,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
