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10/08/14
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LA-based Trion Properties has acquired a 28-unit apartment community located at 4620 South Slauson Ave in Culver City for $6.8 mil, or $242.9k/unit. Trion bought the property from a private seller in an off-market transaction.
The multifamily asset, a non-rent control building originally developed in 1988, consists of 14 one-bedroom/one-bathroom units and 14 two-bedroom/one-bathroom units along with 30 covered parking spaces. The property is located near high-end shops, restaurants and employment centers of Culver City, Santa Monica and Marina Del Rey.
The area surrounding the asset is currently experiencing a major rejuvenation with over $100 mil worth of new projects underway and industry experts predicting continued improvement. In addition, 4620 Slauson provides tenants excellent access to the 405, 90 and 10 Freeways and the Culver City Expo Station.
Trion plans to execute a full rebranding strategy for the property by implementing an extensive high-end interior and exterior renovation program. Upgrades to the units will include adding washer/dryer hookup and installations, stylish vinyl wood plank flooring, modern cabinetry, quartz countertops, full stainless steel appliance packages, contemporary lighting and fixtures, and a tonal interior paint scheme.
In addition, Trion will enhance the property’s curb appeal by making improvements to the façade, adding new signage, applying an attractive modern exterior paint scheme, installing contemporary gating for the parking entrances, and planting new creative landscaping. Trion estimates it can achieve a 36% upside in rents post-renovation and it projects an IRR of 20% in this quickly gentrifying pocket of West Los Angeles.
Robert Narchi of Marcus & Millichap represented both the buyer and seller in the sale. Mitch Paskover from Continental Funding arranged the financing for the acquisition with a 70% loan-to-cost floating loan that has an interest rate of 3.50% over LIBOR.
Commenting on the deal, Max Sharkansky, Managing Partner at Trion, said, “Due to the property’s excellent West LA location and high quality of construction, 4620 Slauson has tremendous potential and fits in perfectly with Trion’s repositioning strategy. Through extensive renovations and hands-on management, Trion will add value from day one of the acquisition.”
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