IEC Acquires Value-Add $134 Million Multifamily Asset in Huntington Beach, CA

Surf 39 Multifamily Property, Huntington Beach, CA

Huntington Beach, CA ) – Institutional fund manager Interstate Equities Corporation (IEC)has acquired a 400-unit value-add multifamily asset in Huntington Beach, California, “Surf at 39,” for $134 million.

Marshall Boyd

This acquisition was on behalf of the firm’s IEC Institutional Fund III, L.P., a fully discretionary, $200 million commingled fund targeting value-add multifamily investments throughout coastal California.

“Our investors’ have given us the power of discretionary capital, so when opportunistic value-add properties present themselves we are in a position to move with conviction,” says Marshall Boyd, Co-President and Chief Investment Officer of IEC.

“Whether we are acquiring a vacant 24-unit property in Highland Park all cash, as we did recently, or this structurally complex, larger-size acquisition in Huntington Beach, our business model remains unchanged.  We specialize in strategically acquiring un-renovated or partially renovated assets in coastal infill markets.”

“Surf at 39 will remain a workforce housing community,” Boyd adds.  “We are not moving the renovation spec to a Class A standard.  Currently, approximately 80 percent of the units are in their original condition. 

’The units are functional, but we will upgrade them in order to meet tenant needs, while retaining the property’s position as the best value for the dollar in its class.”

Sean P. Deasy

Surf at 39, which was originally constructed in 1972, consists of varying floorplans within a spacious environment offering strong amenities, including two swimming pools with spas, a fully equipped business center, a fitness facility, clubhouse, dog park and barbecue area.

“Based on market demand, we will benefit from rising rental rates over time, while continuing to serve the sector of the rental community that is seeking a good lifestyle at a non-luxury price,” Boyd notes.

Sean P. Deasy and Ryan Fitzpatrick, both of HFF, represented both the seller, and IEC as the buyer.  In addition, HFF’s Charles Halladay and Peter Smyslowski arranged acquisition financing.

Goodwin Proctor provided legal counsel and Eisner Amper an audit opinion.

Ryan Fitzpatrick

Surf at 39 is located at 16761 Viewpoint Lane in Huntington Beach, 1.2 miles from the 405 Freeway, and 10 miles from John Wayne Airport.  The 400-unit asset consists of two- and three-bedroom apartments and townhomes.

Founded in 1981, Interstate Equities Corporation (IEC) is an institutional fund manager that invests in and transforms California apartment communities on behalf of endowments, foundations, family offices and pension funds.

 IEC has navigated multiple investment cycles, investing in more than 100 apartment communities over the past 35 years with this investment thesis.

Utilizing repositioning strategies via its integrated property management platform, IEC secures and generates value for its long-term partners. The firm credits strong relationships and an academic, data-driven approach to investment and property management as the core of the consistent results it delivers to investors.

More information is available at www.interstateequities.com.

For more information on this release, please contact:

Jordan Kruk/ Lexi Astfalk

Brower, Miller & Cole

(949) 955-7940

JKruk@browermillercole.com