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7/07/15
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Four San Fernando Valley multifamily properties totaling 269 units were sold in separate transactions during June 2015 for a combined price of over $57 mil. Dean Zander and Vince Norris of Berkadia represented the sellers in all of the deals.
The South Seas Apartments, located on Saticoy Street in Reseda, is an iconic 37-unit property best known as the setting of the 1984 classic movie, The Karate Kid. Built in 1963 and situated on the northeast corner of Tampa Ave and Saticoy St, the property consists of studio, one- and two-bedroom apartment homes. The buyer, Essential Management of Los Angeles, purchased the asset for $4.28 mil from a private seller who had owned the property for over a decade. The buyer plans to renovate the units and common areas plus perform retrofitting upgrades to the parking area.
A New Jersey-based investment group was the original developer and seller of two 54-unit, 1980’s-built communities located in Van Nuys and Sherman Oaks. Sylmar Gardens, located on Sylmar Avenue in Van Nuys, was built in 1985 and consists of 78% two-bed / two-bath and 22% one-bed / one-bath apartments. The property is just steps to the Van Nuys courthouse and civic center, and minutes from Van Nuys and Victory Boulevards. Valleyheart Gardens, located on Valleyheart Dr in Sherman Oaks, was built in 1989 and consists of 100% two-bed / two-bath condominiums averaging just over 1.2k sf. The location is walking distance to Westfield Fashion Square and in close proximity to both the 101 and 405 Freeways. Community amenities at Valleyheart include a pool, spa and fitness center as well as subterranean parking for over 120 cars. The buildings were acquired in separate transactions by Royal Oak Apartments LLC and Pall Mall Properties LLC of Los Angeles, who paid approximately $29 mil; the new owners plan to embark on contemporary renovation programs at both properties.
The fourth sale was for Mountainback Apartment Homes, consisting of 124 units on 5.5 acres located on Foothill Blvd in Lakeview Terrace, adjacent to the 1,400-acre Hansen Dam Recreation Area. Built in 1985, the seller, Jackson Square Properties of San Francisco, had completed some interior upgrades during their 11 years of ownership, including hardwood-style flooring and upgraded kitchen cabinets and appliances in most units. Mountainback is comprised of eight two-story buildings and a single-story leasing office with a fitness center, pool, spa and covered parking. The unit mix is almost evenly divided between one-bed / one-bath and two-bed / two-bath apartment homes averaging nearly 800 sf.
The marketing effort attracted nearly 130 interested buyers from private investors, sponsored equity groups and institutional capital markets. The team conducted dozens of tours in April and May which culminated in multiple qualified offers. The buyer, a local private investment group, purchased the property for $24.25 mil and plans to continue renovations to the interiors and common areas to reflect the desires and needs of this rapidly improving submarket. Allan Freedman of Berkadia arranged full-term, interest-only financing.
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