ORANGE COUNTY, CA— Matthews™, a commercial real estate investment services and technology firm, completed the sale of Mora Kai Apartment Homes, located at 18881 Mora Kai Lane in Huntington Beach, California. Matthews™ First Vice President & Associate Director Kyle Mirrafati represented the buyer in the $16,125,000 transaction, which ranked as the second-largest single-asset multifamily sale in Huntington Beach for price and square footage within the past year.

 

Positioned less than three miles from the coast, the 42-unit apartment community consists of 12 standalone buildings featuring a mix of two- and three-bedroom, townhome-style units situated on a 2.75-acre site. The low-density configuration, larger unit layouts, and on-site amenities support strong tenant appeal. With in-place rents well below market, the property offers over 60% rental upside potential through interior renovations and rental repositioning.

 

Despite multiple competing offers, Matthews™ successfully differentiated the buyer through a well-defined acquisition plan and demonstrated certainty of execution, even as the property required significant capital improvements. To facilitate the acquisition, Matthews™ Capital Markets secured non-recourse 24-month term bridge financing at 80% loan-to-cost, including fully funded interest reserves and a construction budget. With approximately $500,000 in capital expenditures, The transaction closed in 50 days at a 4.18% cap rate, representing an attractive cost basis of $350 per square foot and $383,929 per unit.

 

“Opportunities of this size and quality rarely trade in Huntington Beach,” Mirrafati said. “By clearly positioning our buyer and structuring the right financing, we were able to secure a rare asset in one of Orange County’s most supply-constrained coastal markets.”

 

The buyer, a local private value-add investor focused on Orange County coastal multifamily, was drawn to the scarcity of comparable inventory in the submarket and the property’s renovation-driven growth opportunity, with plans to execute a strategic capital program to increase rents, stabilize operations, and refinance into long-term debt.

 

For more information, please contact Kyle Mirrafati or visit www.matthews.com.

 

About Matthews™

Matthews™, a commercial real estate investment services and technology firm, holds recognition as an industry leader in investment sales, leasing, and debt and structured finance. Based out of Nashville, TN, and strategically positioned with over 1,000 agents and employees in 25+ offices across the United States, Matthews™ continues to focus on expansion into new markets. For more information, please visit www.matthews.com.