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3/22/18
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Universe Holdings has acquired a nine-property multifamily portfolio in the San Fernando Valley for $22.75 mil. Universe also has committed $3.3 mil to a capital improvement budget for the properties, which total 123 units and are located in the Valley communities of Van Nuys, North Hollywood and Panorama City.
“Universe Holdings identified this as a strategic opportunity to acquire nine properties completely aligned with our investment focus and existing portfolio which currently includes more than 1000 units in the San Fernando Valley,” said Henry Manoucheri, Chairman and CEO of Universe Holdings. “This was a complex series of transactions that Universe closed simultaneously, with low leverage at 58 percent. The portfolio was assembled over the past 55 years by a single owner, and was sold with no debt encumbrance and average rents of only $1100 per month. We know these rents are significantly below market averages, and as we commence with property improvements expect to see them rise over time.”
Apartments in the portfolio average roughly 900 sf per unit, with floor plans that range from studio to four-bedroom units, with one- and two-bedroom units making up the vast majority of the mix. Property amenities across the portfolio include expansive unit floor plans, swimming pools, patio areas, on site laundry facilities, outdoor landscaping and gardens, gated and secured access, and on-site parking.
Expected areas of improvements at the properties will roofs, exterior paint, lighting, landscape and common area renovations. Unit interior renovations will commence immediately for vacant units and continue over time across the entire portfolio.
David Leibowitz of Investment Real Estate Associates represented the seller, a private individual, in the transaction. Universe was represented internally by Samuel Landman, Investor Relations. The portfolio was financed with Freddie Mac small balance loans through Capital One.
Commenting on the transaction, Landman noted,“while these assets are under rent control and in need of substantial improvements, our ability to leverage the depth of our internal asset management team to secure appropriate financing and develop a strategic renovation and improvement program made this an attractive long-term investment. We will see rent growth over time, and cash flow from day one.”
The Valley Nine Portfolio consists of the following properties:
• 8123 Langdon Van Nuys, CA - 37 units
• 6502 Vineland North Hollywood, CA – 16 units
• 8924 Van Nuys Panorama City, CA - 18 units
• 6461 Kester Van Nuys, CA - 15 units
• 5840 Hazeltine Van Nuys, CA - 10 units
• 6935 Woodman Van Nuys, CA - 9 units
• 14129 & 14133 Gilmore Van Nuys, CA - 12 units
• 14108 Gilmore Van Nuys, CA – 6 units
The properties were built between 1954 and 1978, with the entire collection of buildings offering a unit mix of four studio units, 73 one-bedroom units, 40 two-bedroom units, and six three-plus-bedroom units. All properties are also conveniently located next to the Los Angeles Metro Rail, Highway 101 and Highway 405.
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