Institutional Property Advisors (IPA), a division of Marcus & Millichap, announces the sale of an eight-property, 644-unit multifamily property portfolio in Los Angeles County, California. The sales price is $161,914,700.
“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.”
IPA’s Greg Harris, Ron Harris, Kevin Green and Joseph Grabiec, along with Bryan Schellinger of Marcus & Millichap, represented the seller, a private ownership group, and procured the buyers. The new owners include an institutional discretionary fund, regional syndicators and high-net-worth private investors.
“The previous owner was in possession of all eight buildings for more than three decades,” comments Ron Harris. “Seven of the eight assets are non-rent-controlled.”
The properties 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
“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.”
The combination of IPA and Marcus & Millichap investment platforms establishes unique positioning for investment professionals to reach commercial real estate investors from throughout the brokerage continuum and create viable opportunities between institutions and private entities.
About Institutional Property Advisors
With a network of senior-level investment advisors located throughout the United States, Institutional Property Advisors (IPA) is qualified to meet the needs of institutional and major private investors. IPA’s combination of real estate investment and capital markets expertise, industry-leading technology, superior support services and acclaimed research offer customized solutions for the acquisition and disposition of institutional properties and portfolios.