WOODLAND HILLS, CA-An Essex Property Trust-sponsored joint venture called Wesco LLP has acquired the newly built 438-unit Millennium Warner Center apartments in Warner Center from Warner Center Apartments LP for $132.85 million. The sale is one of the largest single-property apartment transactions in L.A. County since 2005, according to the Institutional Property Advisors division of Marcus & Millichap, which represented the seller.
IPA executive vice president Stan Jones says that the complex “is currently in a rapid lease-up and is absorbing 40 to 70 leases per month.” He adds, “Given the intense buyer demand and leasing momentum, investors are willing to assume the lease-up risk for true core assets.”
Jones was part of an IPA team including EVP Ron Harris, associate vice president Sal Saglimbeni and associate director Joseph Smolen who represented the seller. Jones says the sale illustrates the “tremendous demand for newer, class A assets in core California markets, and these opportunities are few and far between.”
Harris adds that this demand “has also created an environment in which developers are building new ground-up construction again in many Los Angeles neighborhoods, as is evidenced by the number of cranes in view all over the city.” In addition, Harris adds, ample financing is available for high-quality, newly constructed institutional assets.
The Millennium Warner Center project is one of the first LEED-certified Silver multifamily assets in the Los Angeles region. It features a mix of units from one to three bedrooms, with common area amenities including two resort-style swimming pools with sun decks as well as a 24-hour health club facility with tanning beds, saunas and men’s and women’s locker rooms. Warner Center is one of the L.A. region’s top business districts, with more than 10 million square feet of office space located within a three-mile radius of the Millennium Warner Center.
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