Multifamily Sale Sets Record: $116M Deal on California’s Central Coast Brokered by IPA
Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), has announced the sale of La Vista Apartments, a 460-unit multifamily community in Santa Maria, California. The transaction, valued at $116 million, equates to $252,174 per unit, making it the largest multifamily sale ever recorded in Santa Barbara County by both unit count and sales price, breaking a record previously held by IPA.
“The fastest-growing city in Santa Barbara County, Santa Maria is in the midst of a dynamic growth period with surging housing demand,” said Joseph Grabiec, IPA Executive Managing Director of Investments. “It is estimated that the city’s population will grow by 27% between 2024 and 2050, and over the next five years, average year-over-year rent growth is projected to be 4%, with occupancy rates remaining above 96.5%.”
Grabiec, alongside Kevin Green and Gregory Harris of IPA, represented the seller, Kennedy Wilson, and secured the buyer, Westview Capital. This record-breaking multifamily sale exemplifies IPA’s expertise in high-value multifamily transactions and its ability to connect institutional buyers and sellers in competitive markets.
A Strategic Investment Opportunity
“La Vista Apartments gives new ownership an attractive yield from the outset, a durable income stream, and the ability to capitalize on long-term rent growth through light renovations on 95% of the units,” said Kevin Green, IPA Senior Managing Director of Investments. This strategic multifamily sale positions Westview Capital to benefit from both immediate cash flow and future appreciation in a region experiencing robust economic and demographic growth.
Santa Maria’s status as the fastest-growing city in Santa Barbara County underscores the potential of this acquisition. Located along the Central California Coast, the city is drawing attention for its strong housing demand, driven by population growth and economic activity. The city’s proximity to major employers and its strategic location along U.S. Route 101 further bolster its appeal as a hub for investment.
Prime Location with Accessibility to Key Amenities
Situated on 31 acres, La Vista Apartments offers convenient access to U.S. Route 101 and State Route 135, making it a desirable location for residents commuting to nearby employment hubs. The property is within a short distance of major employers such as Vandenberg Space Force Base, Dignity Health Regional Medical Center, and Skyway Business Park. Retail centers including the Crossroads at Santa Maria, Santa Maria Town Center, and Enos Ranch Business Center further enhance the property’s value.
Constructed in 1979, the property features an extensive array of amenities that appeal to a wide range of renters. Community features include two swimming pools and spas, a clubhouse, a leasing office, expansive courtyards, picnic areas, and Santa Maria-style barbecue grills. Apartment interiors boast large closets, fully equipped kitchens with breakfast bars and pantries, and select units feature vaulted ceilings and skylights, offering residents a comfortable and modern living experience.
About Institutional Property Advisors (IPA)
Institutional Property Advisors (IPA) is a division of Marcus & Millichap specializing in institutional-grade real estate investment and capital markets. With a blend of real estate expertise, industry-leading technology, and innovative research, IPA delivers customized solutions for acquiring, disposing, and financing high-value properties and portfolios.
About Marcus & Millichap, Inc. (NYSE: MMI)
Marcus & Millichap, Inc. is a premier brokerage firm specializing in commercial real estate investment sales, financing, and advisory services. With offices across the United States and Canada, the company has established itself as a leader in the commercial real estate sector. In 2023, Marcus & Millichap’s 1,783 investment professionals closed 7,546 transactions, generating a sales volume of approximately $43.6 billion.
A Record-Setting Sale Reflecting Market Trends
This landmark multifamily sale of La Vista Apartments reflects broader trends in the multifamily real estate sector, where institutional investors are increasingly focusing on high-growth secondary markets like Santa Maria. The combination of steady rent growth, low vacancy rates, and the ability to enhance value through light renovations makes properties like La Vista Apartments particularly attractive.
Santa Maria’s projected population growth and its economic vitality suggest sustained demand for housing, ensuring long-term stability for investors. With the support of IPA’s seasoned team, this record-setting multifamily sale highlights the strength and potential of multifamily investments in dynamic markets.ors. With the support of IPA’s seasoned team, this landmark transaction highlights the strength and potential of multifamily investments in dynamic markets.
