(Read more on the multifamily market.)
DOWNEY, CA-RedHill Realty Investors of San Diego added to its growing multifamily portfolio with the $19.6-million purchase of the 104-unit Downey Park Apartments from Western Downey Park Partners LP. RedHill acquired the property, which is at 9140 Brookshire Ave., in a joint venture with a fund managed by BlackRock Inc.
RedHill founder and CEO Russell Dixon, who formerly served as national managing director for Insignia/ESG and also headed the CB Richard Ellis multifamily practice, notes that this is the company's first foray into Los Angeles. The move into L.A. follows the company's other acquisitions in the past year in Seattle, Phoenix, Denver and the San Francisco Bay Area.
"L.A. is one of the tightest and most fundamentally sound apartment markets in the country," Dixon says. He adds that RedHill intends to "aggressively pursue greater market share here and in outlying suburbs."
RedHill's strategy with Downey Park will be to redevelop the property, which was built in 1964. It plans extensive interior and exterior improvements to enhance value. According to web site information about the property, the two-story complex consists of one- and two-bedroom units that range from 832 sf to 1154 sf.
The Downey Park purchase is part of an acquisition plan through which, by the end of 2007, RedHill is on target to acquire in excess of $350 million in assets throughout major markets in the western US. Among the company's other recent deals was its acquisition of two apartment properties in the Denver region for $44.4 million in a joint venture with Blackrock.
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