ANAHEIM — A luxury apartment complex in the heart of the Platinum Triangle has sold for $160 million, making it one of the biggest multifamily deals in Orange County this year.
New York-based Tishman Speyer acquired the 376-unit Rise at 1910 S. Union St. for about $425,500 per apartment from PGIM Inc. on Aug. 25, according to CoStar records.
PGIM bought Rise from JPI Companies in December 2021 as part of a larger $380 million deal.
According to CoStar data, this is the second-largest multifamily sale in Orange County this year, behind the $179.2 million sale of a 380-unit Mission Viejo property in July.
That property was part of CalSTRS’ $1.63 billion, 11-property portfolio purchase from Camden Property Trust.
Built in 2020, Rise is currently 97% occupied, according to CoStar.
The complex offers studios, one-, two- and three-bedroom apartments and features amenities including a fitness center, swimming pool and a coworking lounge. A rooftop deck with a pickleball court was added last year.
Tishman Speyer officials said they plan to make more improvements to the exterior and amenities.
CBRE Executive Vice Presidents Rachel Parsons and Derrek Ostrzyzek, along with First Vice President Mike Murphy and Senior Associate Kenji Thomas, handled the transaction.
Tishman Speyer was ranked No. 1 on the Business Journal’s commercial developer list published June 1.
High Demand, Low Supply
The purchase comes as the 820-acre Platinum Triangle, anchored by Angel Stadium, Honda Center and the upcoming $4 billion OC Vibe project, continues to attract investment.
The timing couldn’t be better for Tishman Speyer. Two weeks ago, Los Angeles Rams owner and multibillionaire real estate developer Stan Kroenke agreed to buy a controlling stake in the Los Angeles Angels.
Kroenke is expected to strike a deal for the city-owned stadium and surrounding land once the sale is completed. (See the Sept. 7 edition for more on the Angels sale.)
With Kroenke on board, housing in the region surrounding the Big A is sure to rise.
And many institutional investors are focusing on newer, established apartment communities, especially as new multifamily construction has slowed down.
A CoStar report found that Orange County’s apartment construction pipeline is shrinking.
About 3,300 multifamily units were under construction in the third quarter this year, down nearly 47% from the previous year.
Tishman Strategy
For Tishman Speyer, buying Rise is part of a strategy to acquire high-demand assets.
Tishman Speyer bought Rise using its TS Plus core-plus fund, which has raised $1.08 billion from investors so far.
The real estate investment company said it used an $88 million Freddie Mac loan to finance the deal, which works out to about $234,000 per apartment.
This is the sixth acquisition for Tishman Speyer’s TS Plus fund.
Since 2023, the company says it has bought about 3,800 apartments in 13 residential communities and has another 7,400 units planned or under development.
“Rise represents a compelling addition to TS Plus within an Orange County market that continues to transform through public and private investment and is seeing a material reduction in new supply,” Tishman Speyer Managing Director Matthew Friedman said in a news release.