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PICO RIVERA, CA-Davlyn Investments of San Diego has acquired a 141-unit apartment complex called the Courtyard for $18.92 million, with plans to rename it the Bacara and to renovate the property. Davlyn acquired the complex from Glen Pace of Palm Desert in its third acquisition over the past several months and its fourth significant purchase since it opened an acquisitions office in Irvine about a year ago.
Davlyn's director of acquisitions, Aaron Pacillio, describes the appeal of the investment for the firm, which has purchased 10 other multifamily assets in Los Angeles County: "The City of Pico Rivera has been undergoing a dramatic revitalization over the past decade, particularly since the redevelopment of the former Northrop-Grumman facility," Pacillio says.
In addition, Pacillio notes, the company's newly acquired apartment complex is less than a mile south of the Pico Rivera Commerce & Business Center, which comprises more than 2.7 million sf of newly constructed office and light industrial space. The complex is also near the 629,000-sf Pico Rivera Towne Center.
Pacillio comments that the industrial, office and retail developments, along with other development in Pico Rivera, is expected to spur demand for apartments "in a market that has not seen an apartment building of any scale constructed since 1975." Pico Rivera's high occupancy, high barriers to entry, lack of new supply, neighboring product with higher rents and other factors should also work in favor of the complex, Pacillio says.
In addition to the Courtyard, Davlyn recently purchased the 132-unit Woodside Apartments in Riverside, the 128-unit Watermark Apartments in Lake Elsinore and a 200-unit property formerly known as Lake Village Apartments in La Mesa. The San Diego-based owner and operator of apartment complexes and condo conversion projects in Southern California, headed by Jon Williams and Paul Kerr, now has holdings in excess of 2,700 units.
Davlyn's purchase of the Pico Rivera property was brokered by Martin Ensbury of Re/Max Commercial Brokerage and Gabriel and Ralph Guerrero of Southern California Commercial Brokerage. Lending was provided by Eric Flyckt of CapMark Finance Inc., formerly GMAC Commercial Funding.
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