Dave Casper and Karoline Sauls of Hendricks & Partners, who brokered the transaction, report that the building does not fall under rent control and that it is situated in an up-and-coming residential neighborhood defined by strong, moderate home prices and trendy new retail shops. The location is also close to the 80-acre Anthony C. Beilenson Park, the largest recreation area of its kind within the Los Angeles City limits.

The Lakes complex was built in 1988 and features three elevator-accessed floors in seven floor plans. Its 52 units include 28 one-bedroom, one-bath units aparments, 16 two-bedroom, two-bath units and eight two-bedroom, two-bath units. The property was substantially renovated by the seller at the time of closing, with approximately 65% of its interiors remodeled and all exterior work completed.

The buyer plans to finish the interior renovation and inexpensively improve the common areas. Sauls notes that in-place rents for roughly 46% of the units were at least 40% below current market levels at the time of the closing. Casper comments that the deal "was a perfect fit for ORIX" given the buyer's program requirement for high-barrier-to-entry markets and properties demonstrating real cap rates of 5.5% or higher at the close. ORIX caters to tax-sensitive, offshore investors, he notes.