From two houses to 28 units: a coordinated Santa Ana 1031 exchange

A family we work with owned two side-by-side single-family homes on South Euclid in Santa Ana, held free and clear. Rather than sell and absorb a large tax hit on years of appreciation, they wanted to redeploy the full value into income-producing multifamily — and do it through a 1031 exchange, which meant every step had to be timed precisely.

We sold both homes off-market to a single buyer, closing 606 and 612 S Euclid on back-to-back days in April 2026 for a combined $3,300,000. Because the properties were owned free and clear, the entire proceeds — all $3.3 million of equity — were available to reinvest, and sourcing one buyer for both kept the timeline tight and predictable.

With the exchange clock running, we moved straight to the replacement side and closed two 14-unit apartment communities in Santa Ana: the Washington Apartments at 710 W Washington ($2,615,000) and the Pine Apartments at 120 E Pine ($3,700,000), both negotiated below list. Together that is $6,315,000 for 28 units generating roughly $421,000 in annual net operating income — a blended cap rate near 6.7%.

In a matter of weeks the family went from two houses to 28 doors, using financing to turn $3.3 million of equity into $6.3 million of cash-flowing real estate while deferring the capital gains entirely. Coordinating four closings across both sides of the deal, under 1031 deadlines, is exactly the kind of execution that protects a client's basis and compounds their wealth. (See another Santa Ana 1031 move-up.)

Euclid Street Houses:

Pine St Complex:

Washington Ave Complex: