Koto Estates Co., LTD bought a luxury multifamily property in Torrance, California for $71.5 million. Located in the South Bay region of Los Angeles at 25935 Rolling Hills Road, The Highlands features 121 rental units.
The luxury apartment community recently underwent a $16.5 million renovation, which included adding 14 accessory dwelling units.
The Highlands is within a several-minute drive of various retailers, entertainment, and dining venues. Additionally, beaches and coastlines can be found within a 10-15 minute drive.
South Bay’s multifamily market is coming off a solid second quarter. For one, its 4.3 percent vacancy rate in the three months through June was one of the lowest in LA. Also, rent prices in the region have risen 1.4 percent quarter-over-quarter. And while net absorption reached 247 units, the figure is down five units in the year-to-date ending June.
CBRE represented Koto, which is based in Japan and has been a repeat client of the CRE giant. The seller, Ocean Ten, LLC., was represented by Eastdil Secured.
“The South Bay resident base has been severely underserved in terms of high-quality rental housing,” Priscilla Nee, executive vice president of CBRE said.
“The pent-up demand for assets like The Highlands has resulted in high occupancy and other notable multifamily fundamentals for investors, providing our client with the opportunity to drive post-stabilization rent growth.”
