Knott-Orange Apartments, a 35-unit multifamily community in Anaheim, has changed hands in a transaction arranged by Marcus & Millichap. The property, located at 515 S. Knott Ave., sold for $9.65 million, equating to $275,714 per unit.
The sale represents the fourth closing from a larger Anaheim-area multifamily portfolio as the seller continues to reposition its holdings using a 1031 exchange strategy. According to Nick Kazemi, managing director investments with Marcus & Millichap, the transaction closed at more than 99% of the asking price. The parties agreed to an extended escrow period to align with the seller’s exchange requirements.
The buyer, described as a Southern California-based property management company, intends to pursue a value-add approach to the asset. Plans call for renovations to unit interiors along with broader property improvements, with the goal of increasing rental income at the community. While specific scopes of work were not disclosed, the parties indicated that the upgrade program is central to the business plan.
The seller is a family ownership group that had owned and operated Knott-Orange Apartments for more than 30 years. Their long-term hold period underscores the shift in strategy as they recycle capital from this property and other portfolio assets into new investments through the 1031 exchange process.
Kazemi, along with Tyler Leeson and Matt Kipp from Marcus & Millichap’s Orange County office, and Drew Holden from the firm’s Las Vegas office, led the marketing and sale effort. The team represented the seller and also procured the buyer, coordinating a process that balanced pricing objectives with the timing needs of the exchange.
The near-ask pricing, combined with the extended escrow structure and portfolio context, highlights investor appetite for stabilized yet upgradable multifamily assets in the Anaheim market. The buyer’s plans to enhance interiors and overall property condition reflect ongoing interest in value-add execution in the multifamily sector, even as existing owners adjust their holdings for tax and portfolio-management reasons.
Details on financing, cap rate, and subsequent reinvestment targets for the seller were not disclosed.
