Complexes Attracting Buyers

Real estate investment trusts are snapping up Orange County apartment complexes, lured by their high rental rates and low vacancies. But newer, top-quality apartment complexes can be hard to find, said Adam Petriella, regional manager for brokerage Marcus & Millichap.

Many REITs are having to loosen their acquisition requirements to include older properties or combine several small apartment properties into one large complex. For example, Apartment Investment and Management Co., a real estate investment trust from Denver, has agreed to purchase two Tustin apartment complexes, Tustin East Village and the Californian Apartments, and combine them with the adjacent Brookside Apartments to create a 628-unit complex. Apartment Investment acquired the Brookside units last year.

The Denver company paid $17.8 million for Tustin East and the Californian, which are 92% occupied. The apartments, which were built in 1971, have a total of 292 units.

Melinda Fulmer covers real estate for The Times. She can be reached at (714) 966-7832.