Skye at Laguna Niguel is a Class A property in Laguna Niguel, CA and TruAmerica’s first investment in South Orange County. The property was completed in February 2016 and acquired on a pre-stabilized and off-market basis. Skye at Laguna Niguel was purchased at a significant discount to its appraised value as the stabilized cap rate was far below pricing for stabilized core assets in similar coastal locations. Core multifamily properties in coastal Southern California consistently trade in the high-3 to low-4 cap rates. This investment represents a rare opportunity as core product in Orange County are owned by a few select owners and seldom available for sale. The last sale of a core product in this market occurred in Q4 2013 in Irvine, CA, which traded at a 4.0% cap rate. In addition, the City of Laguna Niguel is a severely underserved submarket for multifamily housing as the current average apartment occupancy is 97%, thus demonstrating demand for new product.
A 142-unit, newly constructed property situated along SR 73 and highly visible to the 100,000+ commuters that pass the property on a daily basis. The property also benefits from strong drive by along Cabot Road where the entrance is located. Skye at Laguna Niguel is located less than a half-mile to both I-5 and SR 73. In addition, the Laguna Niguel Metrolink Station is approximately a half-mile from the property. The property is within a 20-minute drive to South Orange County’s major office parks, retail and entertainment centers, and transportation hubs. Unit amenities include plank flooring throughout, stainless steel appliances, in-home washer/dryer, floor-to-ceiling windows, private patios or balconies, and track lighting.