Institutional Property Advisors (IPA), a division of Marcus & Millichap, announced the sale and financing of Alivia Apartments, a 128-unit multifamily property in Whittier, California. The leasehold interest of the property sold for $49,625,000, or $387,695 per unit. The acquisition financing was arranged by Marcus & Millichap Capital Corporation.
“Completed in 2022, Alivia is one of the only newly constructed apartment buildings in the Gateway Cities region of Los Angeles County,” said Kevin Green, IPA executive managing director. “With just one 60-unit property in the development pipeline, Alivia will be one of the few new rental options.” Green, along with IPA’s Joseph Grabiec and Greg Harris, represented the seller, Fairfield Carmenita LP, and procured the buyer, NextGen Properties Group. Michael Derk, executive managing director, Marcus & Millichap Capital Corporation, arranged the financing. “We engaged with 29 lenders to secure the best terms available for the buyer. The 10-year, $19,125,000 nonrecourse loan is fixed at 5.31 percent and has a step-down prepayment penalty,” said Derk.
“The lack of housing development in Whittier over the past five years has contributed to year-over-year rent growth of 4.63 percent and 97 percent average occupancy,” added Grabiec. “Given limited new supply, it is expected that, over the next five years, rent growth will average 3.96 percent year-over-year and the submarket will maintain 98 percent to 99 percent average occupancy.”
NextGen Properties Group recently sold South Hills Apartments in Whittier, California and used the proceeds to acquire Alivia Apartments via 1031 exchange. “Kevin Green and his group made this transaction effortless,” saidChris Kerstner, CEO and founder of NextGen. “This is our second transaction with his group, and it certainly won’t be the last.” Derk also arranged the financing for the South Hills Apartments sale.
There are over 800,000 jobs within a 10-mile radius of Alivia Apartments and proximity to interstates 5, 605, 105, state routes 60 and 91 gives residents access to approximately 1.3 million jobs in the nearby cities of Anaheim, Long Beach, Torrance, El Segundo and Los Angeles. Three regional Metrolink rail lines, retail and entertainment at the Santa Fe Springs Marketplace, Whittier Marketplace and Uptown Whittier, are all nearby.
Sitting on over five acres, Alivia Apartments has seven residential buildings with 68 one-bedroom/one-bath units that average 742 square feet and 60 two-bedroom/two-bath apartments averaging 1,110 square feet. All units have stainless-steel appliances, washers and dryers, kitchen islands with storage, and wood-style plank flooring. Community amenities include a resort-style pool and spa, fitness center, social lounge, dog park, and outdoor fire lounge.
