Anaheim, California – A 35-unit multifamily property, known as Knott-Orange Apartments, has been sold for $9.65 million. The transaction, announced by commercial real estate brokerage firm Marcus & Millichap, represents a significant investment sale in Orange County. Located at 515 S. Knott Ave. in Anaheim, the final sale price for the property equates to $275,714 per unit.
The sale was facilitated by a specialized team from Marcus & Millichap, which held the exclusive listing for the property. Nick Kazemi, Tyler Leeson, and Matt Kipp, all managing directors of investments operating from the firm’s Orange County office, collaborated with Drew Holden from the firm’s Las Vegas office. This team was responsible for marketing the property on behalf of the seller and for ultimately procuring the buyer.
The seller, a family entity that had maintained ownership and operation of the Knott-Orange Apartments for more than three decades, initiated the sale as part of a strategic repositioning of its real estate holdings. This particular transaction is noted as the fourth closing from a larger multifamily portfolio located in the Anaheim area. The seller utilized a 1031 exchange strategy, which allows for the deferment of capital gains taxes when reinvesting proceeds from a sale into similar property. To accommodate the requirements of this exchange, an extended escrow period was arranged, and the property ultimately sold for more than 99 percent of its initial asking price.
The buyer, identified in the transaction as a Southern California-based property management company, has articulated specific plans for the newly acquired asset. These plans involve undertaking renovations to the interiors of the individual units, alongside implementing broader property improvements across the community. The stated objective behind these planned upgrades is to enhance the property's overall appeal and increase the rental income generated by the units. According to Nick Kazemi, the interest shown by the buyer reflects a "continued demand for well-located multifamily assets with operational upside in Orange County," indicating a market trend towards properties that offer potential for value addition through improvement.
Constructed in 1977, the Knott-Orange Apartments consist of a 32,325-square-foot residential development situated on a 1.25-acre parcel. The community offers a diverse mix of residential unit configurations to its residents. Specifically, there are six units designed with one bedroom and one bathroom, complementing the 29 units that feature two bedrooms and one bathroom. For resident convenience, on-site amenities include a swimming pool, a spa, and dedicated laundry facilities. The property's strategic location in Anaheim ensures convenient access to a wide array of employment centers, diverse retail shopping destinations, and various entertainment options situated throughout the broader Orange County region.
With the sale finalized, the attention now shifts to the buyer's proposed renovation plans. These planned improvements mark the next operational phase for the Knott-Orange Apartments, poised to enhance the property's competitive standing within Anaheim’s rental housing market.
