Citron House represents TruAmerica’s second investment overall in Orange County and second investment in 2018. Citron House is located in one of the most highly desirable coastal cities in Orange County, Huntington Beach. Widely recognized around the country as “Surf City USA”, Huntington Beach offers quintessential beach living at its finest and exemplifies the coastal Southern California lifestyle. Huntington Beach boasts strong apartment fundamentals and demographics. The average vacancy rate through 2021 is projected to be 3.05% and the average household income is over $100,000.
Citron House benefits from a desirable location due to its close proximity to a major retail center and accessibility. The property represents a proven value-add opportunity as the seller has performed light to moderate scopes of renovation to date. TruAmerica has transacted with the seller before as TruAmerica purchased a portfolio of six-properties totaling 1,402 units in greater Baltimore from the seller in 4Q 2016.
Citron House is a 264-unit property built in 1970. The property features an attractive unit mix of one-bedroom (67%) and two-bedroom (33%) floorplans within a highly ranked school district. All of the units have washer/dryer, private balcony or patio, air conditioning, heating, ceiling fans, and walk-in closets. The property also features community amenities that include a pool, spa, fitness center, dog park, barbeque grills, 24-hour package lockers, and carports.
Huntington Beach is one of the largest cities in Orange County and located 35 miles south of Los Angeles and 90 miles north of San Diego. Citron House enjoys an excellent location as it is situated off of Beach Boulevard, one of the main arterials of Huntington Beach. The 800,000 square foot Bella Terra outdoor mall is within two miles of the property. This outdoor mall is anchored by Costco, Whole Foods, Target, REI, and Barnes & Nobles. In addition, Interstate 405 is less than two miles from the property providing access to all of Orange County major employment centers within a 30-minute commute.
Approximately 48% of the units have received light upgrades, while 24% of the units have been moderately upgraded. The rest of the units (28%) are considered classic units and have not been renovated by the seller. TruAmerica plans to bring all units to a fully renovated status in order to decrease the wide gap in rents between newer and 1970’s vintage properties in the area. All units will have stainless steel appliances, hardwood flooring in the common areas, stone countertops with under-mount sink, modern cabinets, and kitchen backsplash after TruAmerica completes its interior renovation program. Furthermore, TruAmerica plans to upgrade the community amenities by enhancing the pool and spa area, fitness center, signage, landscaping, lighting, reconfiguring the leasing office, and creating a new outdoor barbeque area.