News Alert: Oxnard’s Hill Street Apartments Sell After Decades of Family Ownership

 

A 48-unit apartment property at 450, 508 and 516 West Hill Street in Oxnard’s Kamala Park neighborhood has sold for $10,920,000. The seller, John Haggerty, had owned it for decades, and this was the first time in that span it had been offered for sale. The buyer is a private investor.

Built in 1963 and 1964 on about 1.2 acres, the two-story buildings hold 44 two-bedroom, one-bath apartments and four one-bedroom units, with carport parking on site. Two-bedroom apartments are in steady demand from working families in Oxnard, and the property has a long record of strong occupancy. It sits a short drive from Naval Base Ventura County, the Port of Hueneme and the farms around Oxnard.

By our team’s count, it is the largest apartment sale in Oxnard, Ventura County’s largest city, in two years, apart from two institutional deals. The sale also shows there are still buyers for well-located older apartments in a city that caps annual rent increases on older buildings at 4 percent.

“Buyers today are focused on yield and on understanding how much deferred maintenance they’re taking on. Buildings like this are workforce housing, mostly two-bedroom apartments with working families in them, and the next owner has to be ready to invest in keeping them up and running for years to come.”

JACK GILBERT  ·  RADIUS COMMERCIAL REAL ESTATE

Getting to the closing table took some work. Escrow ran about three months, roughly a month longer than first planned, as the parties worked through inspections of buildings more than 60 years old, a California insurance market that has grown harder to navigate for older apartment properties, and a loan rate lock that had to be extended before closing.

“This is still a slow market, and debt is still expensive. Buyers are underwriting every building carefully, and deals close when both sides are willing to work through what comes up in escrow. John and the buyer both did that here.”

STEVE GOLIS  ·  RADIUS COMMERCIAL REAL ESTATE

Steve Golis, Jack Gilbert and Aneta Jensen of the Golis Team at Radius Commercial Real Estate represented the seller. Nick Henry and Jason Liehr of Beachside Partners represented the buyer.

“I’ve owned these buildings for just under 50 years, so selling them was a big decision for me and my family. Steve and Jack were with us every step of the way. This escrow had more moving pieces than any of us expected, and they kept everyone at the table until it closed. I’m glad they were the ones handling it for us.”

JOHN HAGGERTY  ·  SELLER

ABOUT THE GOLIS TEAM   The Golis Team at Radius Commercial Real Estate represents families, estates and private investors in apartment and investment property sales from Ventura County to San Luis Obispo County, with more than $1.5 billion closed since 2003.