250-Units Net $33M, 206-Unit REO Deal Sells

[IMGCAP(1)]WOODLAND HILLS, CA-Apartment buyers have acquired two complexes totaling 456 units in two separate deals here and in Los Angeles, one of them an REO sale. The two properties that sold are the 250-unit Arbors at Warner Center at 6333 Canoga Ave. and a 206-unit complex called the Flat at 750 S. Garland Ave. in Los Angeles that traded in an REO sale. The Arbors sold for $33 million; the sales price was not disclosed for the Flat, which was listed at an asking price of $27 million.

[IMGCAP(2)]In the Arbors at Warner Center deal, a joint venture of San Francisco-based Swig Co. LLC and an institutional real estate investment fund managed by Capmark Investments LP acquired the property in a direct deal between buyer and seller. Mitch Thurston and Andy Ahlers of Capmark Finance Inc.’s San Francisco office originated a new first mortgage for the acquisition through Freddie Mac’s CME multifamily loan program. Investors Property Services of Foothill Ranch in Orange County will handle the day-to-day property management of the Arbors.

According to Ken Perry, the Swig Co.’s chief investment officer, the acqusition enabled the San Francisco-based firm to “acquire a good institutional-quality residential community at a basis that should minimize our downside exposure and allow for great cash flow and potential upside as the economy and the local market recover.” Perry adds that, “This one-off investment in a multifamily residential property is clearly a departure from our business plan goal of acquiring additional urban office buildings.” However, he said, the investment in the Arbors creates additional product-type and geographical diversity for the Swig Co. portfolio.