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$15.6M Nets Value-Adding Investor 196 Units

WEST COVINA, CA-"When this building is renovated and the rents are up to market level, I expect they will have close to a 9-cap deal," the broker for the deal tells GlobeSt.com. "West Covina is a very hot market right now.

By Bob Howard | Updated on July 17, 2002

WEST COVINA, CA-F&F West Covina Associates LP of Larkspur, Calif., bought a 196-unit apartment building at 1513 W. San Bernardino Road in West Covina for $15.6 million from RPM Investments of Los Angeles.

The seller built the property and owned it for more than 30 years, broker Robin Ossenbeck of Hendricks & Partners, who represented both parties in the transaction, tells GlobeSt.com.Ossenbeck says the buyer is expected to add value to the property both through renovations and by raising rents to market level at the building, which was built as HUD subsidized housing but has been converted to a market-rate complex.

“West Covina is a very hot market right now,” Ossenbeck tells GlobeSt.com. She explains that the city’s location, convenient for driving into to Los Angeles County as well as the Inland Empire counties of Riverside and San Bernardino, appeals to renters working in those counties.

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