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5/04/18
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An eight-property, 644-unit multifamily property portfolio in Los Angeles County has traded hands in transactions valued at $161.9 mil ($251.4k/unit). The properties sold are:
Oaktree Apartments, 148 units, Santa Clarita
Stillmore Apartments, 130 units, Santa Clarita
Tamarind Terrace Apartments, 112 units, Hollywood
Regency Apartments, 88 units, Van Nuys
Woodley Court, 35 units, Van Nuys
Vista Del Madre, 28 units, Pasadena
Foothill Village, 60 units, Sylmar
Sylvan Apartments, 43 units, Van Nuys
Greg Harris, Ron Harris, Kevin Green and Joseph Grabiec from Institutional Property Advisors, along with Bryan Schellinger of Marcus & Millichap, represented the seller, a private ownership group. The brokerage group also procured the buyers, which include an institutional discretionary fund, regional syndicators and high-net-worth private investors.
We generated 130 offers and sold the assets to five different investors, says Greg Harris, IPA. Cap rates ranged from the mid-threes to the mid-fours on current operations. Projected cap rates, post-renovation, range from 5 percent to 6 percent.
The previous owner was in possession of all eight buildings for more than three decades, added Ron Harris. Seven of the eight assets are non-rent-controlled.
It is rare to find a sizeable, almost completely non-rent-controlled value-add portfolio where the upside can be immediately realized, comments Green. The investment appeal was compounded by the more than 20 percent average loss-to-lease per asset, which contributed to the tremendous demand and competition this portfolio inspired.
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