While apartment sales plummeted last year, falling 68% year over year as of November, some deals are still getting done. Not surprisingly, many of them occurred right at the end of the year, as investors allocated funds before 2023 closed.
Here are eight of the biggest U.S. apartment deals that were announced in December:
Property: The Grand Costa Mesa
Location: Costa Mesa, California
Sales price: About $234 million
Buyer: Advanced Real Estate
Seller: An entity related to Camden Property Trust
Irvine, California-based owner and operator Advanced Real Estate bought the 714-unit The Grand Costa Mesa in Costa Mesa, California, according to CoStar News. The seller was an entity related to Houston-based apartment firm Camden Property Trust, the outlet reported.
The sales price of roughly $234 million was among the largest apartment transactions in the state last year in terms of number of units. As part of the deal, Advanced secured a $150.8 million Freddie Mac loan at a fixed interest-rate of 5.95% for 10 years with full-term, interest-only payments, according to CoStar.
The firm plans to spend $45 million to upgrade the property's pools, spas, clubhouse and dog park, as well as add washers and dryers and other interior renovations.
The deal adds to Advanced's roughly 12,000-unit apartment portfolio valued at more than $4 billion. The company also bought apartment properties in Long Beach and Huntington Beach, California, this year, CoStar said.
Properties: Los Robles Apartments and Retreat at Thousand Oaks
Location: Thousand Oaks, California
Total sales price: $171.3 million
Buyer: FPA Multifamily
Seller: Decron Properties
San Francisco-based investor FPA Multifamily acquired a two-property luxury portfolio in Thousand Oaks, California, through its Core Plus Fund V. Los Angeles-based developer and manager Decron Properties sold the 253-unit Los Robles Apartments and the 146-unit Retreat at Thousand Oaks for $171.3 million, after having purchased them for $126.5 million in 2016, according to the press release. Institutional Property Advisors, a division of Marcus & Millichap, represented the seller and procured the buyer.
Los Robles Apartments is the second-largest multifamily asset in Thousand Oaks. The 32-building property has a unit mix of studio, one- and two-bedroom apartments averaging 882 square feet.
The Retreat at Thousand Oaks is a 28-building asset with a mix of one- and two-bedroom apartments, three-bedroom townhomes and four-bedroom flats. The average unit size is 1,260 square feet.
Property: Union West Tower
Location: Chicago
Sales price: About $128 million
Buyer: Tishman Speyer
Seller: Joint venture led by ZOM Living
Tishman Speyer acquired Union West, a recently constructed, 15-story luxury residential tower in downtown Chicago’s West Loop neighborhood, for roughly $128 million, according to Crain's Chicago Business.
Opened in 2019, Union West features 357 rental apartments across 32 floorplans, ranging in size from studios to three bedrooms. Tishman Speyer purchased the tower from a joint venture led by ZOM Living, according to a press release shared with Multifamily Dive.
The building, which is currently 94% leased, features an outdoor pool and cabanas, rooftop grill stations and firepits, private work and meeting rooms, a yoga and spin room, pet spa and dog run.
Tishman Speyer’s acquisition of Union West is the latest addition to its national and international residential platform. Over the past year, the firm has added 1,100 units across three communities in Boston, Atlanta and Chicago and has started construction on approximately 2,300 rental units in mixed-use projects in the Boston, New York City, Washington, D.C., and Los Angeles regions.
Property: The Carriages at Fairwood Downs
Location: Renton, Washington
Sales price: $107 million
Buyer: An entity related to Abacus Capital Group
Seller: An entity that shares an address with Sequoia Equities
The 400-unit Carriages at Fairwood Downs in suburban Seattle traded hands for $107 million, according to local real estate publication The Registry, which cited public records. The buyer was an entity affiliated with New York City-based Abacus Capital Group. The seller was an entity that shares an address with Sequoia Equities, a property management company based in Walnut Creek, California, the publication reported.
The complex in Renton, Washington, offers one-, two- and three-bedroom apartments, according to Apartments.com. Community amenities include a movie theater, recreation room and a cabana with fire pits. Interiors feature patios and balconies, wood-look flooring and stainless steel appliances.
Abacus Capital Group has acquired more than 31,000 units and invested over $4.8 billion into multifamily properties since its founding in 2004, according to its website.
Property: Olivine
Location: Littleton, Colorado
Sales price: $100 million
Buyer: The Connor Group
Seller: An entity related to Alliance Residential Co.
Dayton, Ohio-based investment firm The Connor Group acquired Olivine in Littleton, Colorado, for $100 million from an LLC affiliated with Alliance Residential Co., according to the Dayton Business Journal. Alliance purchased the property in 2019 for $5 million and built the apartments in 2021, the Journal said, citing public records.
Olivine offers residents access to an 18-hole golf course with scenic mountain views, an outdoor pool, a fitness center and a rooftop lounge, according to a release shared with Multifamily Dive. Additional amenities include a marketplace, co-working space, practice putting green, a dog park, ski-tuning and a community clubhouse.
The property is The Connor Group’s fifth acquisition in Colorado since entering the market in 2017 and its eighth purchase overall in 2023, bringing its total assets under management to more than $4.5 billion, the release said.
Property: Tessera at Orenco Station
Location: Hillsboro, Oregon
Sales price: $99 million
Buyer: Undisclosed
Seller: Security Properties
Seattle-based Security Properties sold Tessera at Orenco Station, a 304-unit community in Hillsboro, Oregon, to an undisclosed buyer for $99 million, according to The Registry.
Built in 2014, the mid-rise, four-story property is made up of three buildings with one-, two- and three-bedroom floorplans averaging 807 square feet. Units feature stainless steel appliances, granite countertops, European-style cabinetry, walk-in closets and in-unit washers and dryers. Community amenities include an outdoor pool and spa, a fully equipped fitness center, a game lounge, a business center with work-from-home studios, a fire pit, barbecues and a dog park, The Registry reported.
Property: Alta Arlo
Location: Seattle
Sales price: $97 million
Buyer: Carmel Partners
Seller: Wood Partners
Carmel Partners acquired a 243-unit apartment building in Seattle’s Columbia City neighborhood for $97 million, according to the San Francisco Business Times.
The San Francisco-based investor bought Alta Arlo from Atlanta-based Wood Partners, which had purchased the site in 2019 from Seattle developer Lake Union Partners for $17 million, according to the newspaper.
Property: Novel Turtle Creek
Location: Dallas
Sales price: Withheld
Buyer: Goldrich Kest
Seller: Crescent Communities
Crescent Communities sold its Novel Turtle Creek property to Culver City, California-based investor and developer Goldrich Kest. The 20-story luxury high-rise community, located in the Turtle Creek area of Dallas, opened in May 2022.
Located near shopping, dining, parks and trails, Novel Turtle Creek features 206 one-, two- and three-bedroom units with high-end finishes such as hardwood flooring, gas appliances and wine refrigerators. Amenities include a landscaped outdoor deck with a pool, outdoor kitchens and views of Turtle Creek and downtown Dallas.
The sale comes as Crescent Communities continues to grow its presence in Texas, with more announcements on the horizon, the release said. It is one of three multifamily communities that Crescent has developed in its home market of Dallas and marks the second sale to Goldrich Kest, with Atlanta’s Novel Midtown trading hands last month.
