420 N BataviaOrange, CA 92868

Description

Just listed near the heart of Old Towne Orange, 420 N. Batavia Street is a turnkey Chapman University student housing investment with two spacious, detached homes on one lot. It's a great fit for either a cash-flowing investment or an owner user. The front house was taken down to the studs and rebuilt with a new construction expansion into a 4 bedroom, 3 bath open floor plan layout purpose-built for student living. The rear house is a brand-new 2023 construction 4 bedroom, 4 bath home built from the ground up. Together the property offers 8 bedrooms and 7 baths across 2,445 SF on a 6,401 SF lot. Both homes feature luxury vinyl plank floors, new high-end finishes and appliances, private bed/baths, ensuite laundry, air conditioning, and private patios. Tenants share a large backyard with a lounge area and spa. The property has been 100% pre-leased since 2023 with steady rent growth year over year. It is fully leased at $10,955/mo, and every lease carries a parental guarantee, giving you secure income and reduced credit risk. At $1,875,000, 420 N. Batavia is offered at a 5.02% cap rate, a 14.26 GRM, and $234,375 per bedroom. That is the lowest GRM and lowest price per bedroom of any comparable Chapman-area sale in the past two years. It is about 17% below the median price per bedroom and $165,000+ below every other 8-bedroom sale. Current rents average just $1,369 per bedroom, about 10% below comparable Chapman properties, taking the cap rate to 5.59% at market rents. Students win too: a full 12-month lease at 420 costs less than a 9-month single bedroom at Chapman's own Chapman Grand apartments. Owners can add further value by converting the garage or building a second detached ADU under California's new AB 956, and excellent loan terms are available. With nearly 10,000 students and consistently strong enrollment within walking distance, this professionally managed asset offers year-round demand, low vacancy risk, a unique hedge against California rent control, and long-term appreciation in one of Orange County's most desirable rental submarkets.

Property Information

Property type

Residential Income

Sub-type

Duplex

Year built

2023

Stories

1

Building area

2,445 Sq Ft

Lot size

0.15 acres

Garage spaces

1

Parking spaces

5

Days on market

35

MLS^® Listing#

PW26212529

Property Features

Interior

High Ceilings

Appliances

Dryer · Washer

Cooling

Ductless

Heating

Ductless

Fireplace

None

Pool

None

Laundry

Inside

Lot features

Back Yard · Front Yard · Level · Near Public Transit

Community

Curbs · Golf · Park · Street Lights · Sidewalks

Sewer

Public Sewer

Water source

Public

Parcel number

03901209

Directions

W of Glassell St and North of Chapman Ave