Pinetree Terrace Apartments, a 58-unit multifamily community in the central San Fernando Valley community of Reseda, traded hands in a $17.6 million ($303k/unit) deal.
The property comprises five two-story apartment buildings featuring a mix of one-, two-, and three-bedroom floor plans ranging from 900 sf to 1.3k sf, each equipped with washer and dryer hookups. Pinetree Terrace is a well-appointed community offering amenities such as a pool and spa, fitness center, laundry room, leasing office, and subterranean parking.
The seller, GLS Building Corp, who also developed the property, decided to divest from the Los Angeles multifamily market and reallocate investments into other asset classes. This strategy mirrors a broader trend where investors mitigate risk and capitalize on different market opportunities, while also addressing challenges associated with the ULA tax imposed in April 2023.
The nonprofit buyer, Foundation for Affordable Housing, is experienced in conversion projects and intends to transform the property to offer long-term affordable housing solutions for local community members, especially social workers and teachers.
Otto Ozen and Brian Nakamura with The Mogharebi Group represented the seller in the deal. According to Ozen, they secured an Affordable Housing Buyer, which exempted the seller from the 5.5% ULA Mansion Tax, saving them nearly $1 mil in ULA taxes.
Foundation for Affordable Housing creates safe, comfortable, high-quality, affordable homes that enrich the lives of its residents and add stability to the surrounding community. The Foundation has three core activities; own affordable rental housing, partner with for-profit organizations for the ownership of affordable rental housing, and to serve its properties through the provision of resident services. “Home” is more than the roof over your head. Home is that corner of the world you can call your own – a space to find respite and to welcome your family and friends. By using creativity, flexibility, and perseverance, the Foundation has developed over 190,000 housing in 13 states.
