This trophy asset is located on the highly sought-after Balboa Peninsula in Newport Beach and is situated on a corner-lot parcel just one property back from the Pacific Ocean. The location is within walking distance to shops, restaurants, the Newport Yacht Club, and just steps to the harbor and the beach. The property was held under split interest, with one owner seeking to cash out and the other owner looking to exchange into out-of-state residential income investments. The deal initially fell out of contract with another brokerage due to challenges brought on by an aging building structure. This made it difficult for buyers to procure financing. Additionally, recent changes in California legislation also counteracted long-standing local zoning ordinances and prevented any developer from buying and redeveloping the parcel. As a result, the owner contacted Matthews™ to help sell the property.
By utilizing Matthews’ Integrated Real Estate Management System (IREMS), industry-leading marketing, and a proprietary central database, the Matthews™ representatives were able to source a suitable investor and successfully navigate the escrow process. The buyer, a value-add investor from Long Beach, CA, was motivated to expand his portfolio in the Newport Beach market. While the asset initially appeared unfinanceable, proactive measures and a remediation strategy addressed the structural safety concerns. Matthews™ was able to work with the lender and successfully finance the acquisition.
Thanks to the diligent effort of the Matthews™ team, the property went under contract and closed with a relatively short due diligence process. The buyer was able to obtain aggressive financing on a 2.65% fixed 30-year mortgage and accomplish their goal of expanding their portfolio. The sellers were able to sell for the market value and accomplish their goals of cashing out and acquiring a residential income property in the Phoenix MSA. The buyer plans to rehab and stabilize the property over the next three to five years.
Recent Media & Thought Leadership