(Read more on the multifamily market.)
MONTEBELLO, CA-Advanced Real Estate Services Inc. of Lake Forest has acquired the 256-unit Somerset on Garfield apartment complex from Beverly Hills-based Kennedy Wilson for $40 million, according to Marcus & Millichap. Vice president of investments Ron Harris of Marcus & Millichap, who brokered the sale along with vice president of investments Stewart I. Weston of the firm's Long Beach office, tells GlobeSt.com that the newly renovated property sits on 12.5 acres of land, making it a "very, very low density project."
With its low density and location, Harris says, the complex is "literally a community unto itself." Harris and Weston represented both seller KW Somerset LLC and the buyer, which operates Advanced Management Co., a leading property management company in Orange County that teams with Advanced Real Estate Services Inc. for management, development and investment in apartment properties.
The Somerset on Garfield complex is located at 300-336 N. Garfield Ave. in a growing Montebello market. It totals 246,416 rentable sf and sits at the crossroads of four major freeways, including the 710, 5, 605 and Route 60.
The unit mix consists of 54 one-bedroom, one-bathroom apartments and 202 two-bedroom, one-bath units. Built in 1948, the property was renovated during by the seller during the past several years.
Among the renovations to the complex was the addition of new copper hot- and cold-water plumbing and upgraded electrical systems throughout. The renovations also included the building of a new clubhouse as well as remodeling of many of the interiors with the addition of ceiling fans, new gas oven/ranges, wood flooring and contemporary vertical blinds.
The completed renovations included about 70% of the units, the Marcus & Millichap brokers note, and the new owner intends to spend major dollars per unit in order to reposition the property to an even higher standard. They point out that Montebello is a solid rental market, with a stabilized vacancy of 3% more than 6% rent growth over the past year.
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