Baker Block in Costa Mesa, Calif.
Courtesy Paul Vu Baker Block in Costa Mesa, Calif.

Los Angeles-based Cityview recently announced the sale of the 240-unit Baker Block apartment community in Costa Mesa, Calif., for $113.5 million. The buyer is Baker Block Associates LP, based in Anaheim. Tom Moran Jr. from Moran & Co. represented Cityview in the transaction.

At $473,000 per door, the 181,155-square-foot Baker Block property is one of the highest price-per-unit sales ever recorded for a mid-rise multifamily rental product in Orange County. The community opened in 2017 and was originally developed by Cityview, in partnership with Red Oak Investments, Johnstone Moyer, AO, and Inovus Design.

“Cityview took great strides to position Baker Block as an alternative to comparable product in the area, creating a unique living environment, connectivity to the local community, and an elevated resident experience,” said Sean Burton, CEO of Cityview. “Baker Block exceeded our lease-up expectations and achieved one of the highest per-unit sale prices in the area. After leasing the project we saw significant investor interest in the market, which helped inform our decision to sell.”

Mural on Baker Block in Costa Mesa, Calif.
Courtesy Paul Vu Mural on Baker Block in Costa Mesa, Calif.

The new owner intends to hold on to the asset, which has a residential mix of studio, one-, two-, and three-bedroom units. Amenities include a resort-style poolside retreat, an indoor/outdoor clubroom with a full kitchen and a wet bar, a two-story fitness center with yoga and spin studios, a rooftop sky lounge, gaming space, a dog park, a coffee bar, a pet wash, and multipurpose spaces. The hip community also boasts the hosting of Orange County’s largest mural created by world-renowned street artist Shepard Fairey.

Cityview also divested itself of a 65% ownership stake in The Pearl on Wilshire, an upscale, mixed-use property in Los Angeles' Koreatown neighborhood. The total property is valued at $170.87 million. The 346-unit apartment community rests on land originally entitled by the Hankey Investment Co., which led the investment group that bought into the property.

The Pearl on Wilshire in Los Angeles.
Courtesy Guettler Photography The Pearl on Wilshire in Los Angeles.

Cityview partnered with CBG Building Co., VTBS Architects, and Nadia Geller Designs on the original construction of The Pearl, which was completed in June 2018. The Pearl achieved lease-up in 10 months at above pro forma rents.

“Cityview is proud to have executed on its business plan for The Pearl, and we are confident the buyer group will ensure it continues its success as Koreatown’s market-leading community,” said Burton. “The community exceeded our lease-up expectations and was sold at a record-breaking price per square foot.”

The building is comprised of 17 unique floor plans with a blend of studio, one-, and two-bedroom units above 8,300 square feet of carefully curated retail space, which includes Orangetheory Fitness, Alchemist Coffee Project, and the Carving Board artisan sandwich shop.

All units feature keyless door locks, full-sized washers and dryers, stainless steel appliances, five-burner gas ranges, smart thermostats, quartz countertops, and balconies. Community amenities include a large pool deck with cabanas, lounge seating, and a rooftop terrace laid out with a fireplace, Korean barbecue grills, and club room. There’s also a fitness center with a yoga room, a dog spa, and three open-air lounges with firepits and a bocce ball court.

“The Pearl stands apart with an exceptional contemporary aesthetic, a distinct focus on healthful living, a carefully curated amenity package, and a prime location,” added Burton. “Cityview and Hankey Investment Co. are proud to be part of Koreatown’s revitalization with this development, bringing much-needed housing to one of the fastest-growing submarkets in Los Angeles.”