After the Seaside Apartments hit the market for the first time since its opening roughly four decades ago, the complex in Santa Cruz sold quickly, signaling the strength of demand for affordable housing in the region.
The 84-unit complex sold for $45 million, or $535,714 per unit, in a transaction brokered by Marcus & Millichap. This was the most expensive sale for the Santa Cruz region in two years.
The deal earned a 2025 CoStar Impact Award as judged by real estate professionals in the market.
The project is "located in a highly constrained multifamily market with little affordable housing," said Mitchell Zurich, senior managing director of investments in Marcus & Millichap’s Palo Alto office. “The property is a garden-style multifamily asset with a Project-Based Section 8 Housing Assistance Payments contract for 100% of the units.”
Renter demand has helped maintain vacancy rates in Santa Cruz despite a surge in high-end apartment construction over the past year, according to CoStar analysis.
About the project: Seaside Apartments is within walking distance of shopping, beaches and parks and is near Capitola, Capitola Village and Pleasure Point. The property has five two-story residential buildings and one single-story office and amenities building on over four acres. Units range from a 626-square-foot one-bedroom layout to a 1,156-square-foot three-bedroom townhouse.
What the judges said: The transaction marked an "important sale" for the region, according to Benjamin Ow, president and broker of Ow Commercial.
They made it happen: Marcus & Millichap Senior Managing Director Mitchell Zurich, Executive Managing Director of Investments Kirk Trammell and First Vice President of Investments Joshua Johnson.