SAN DIEGO-Locally based Davlyn Investments, a multifamily and commercial property investment firm, listed seven apartment communities for sale. The listing totals more than 900 units and all properties are located in Southern California.
According to the firm, the properties represent one of the largest California portfolio listings in recent years. Aaron Pacillion, director of acquisitions at the firm, tells GlobeSt.com that the portfolio should fetch north of $133 million.
The product ranges from class A, 2001-built, institutional-quality assets, to late 1970’s rent-control properties. Six of the communities are located in the San Fernando Valley region of Los Angeles. The 7th is situated in the Inland Empire city of Riverside, CA.
“The ‘diversified’ collection of assets provides an excellent opportunity for any group looking to either expand their Southern California holdings or enter one of the country’s most exciting investment markets,” explains Davlyn Investments. Paul Kerr, president of the firm, says that the sales “were motivated by tax considerations, plain and simple.”
Kerr explains that “We believe that changes will be made to the existing tax code in the near future that would have materially harmed us, had we held onto these properties. Absent this threat, we never would have sold into this investment environment, as we believe that Southern California will experience extraordinary economic growth over the next 10 to 20 years.“
The property listings are individually spread between Dean Zander and Robin Ossenbeck of Hendricks & Partners, Ron Harris of Marcus & Millichap and Sean Deasy with Holliday Fenoglio Fowler.
According to Pacillio, “We see this as both a problem and an opportunity. Although we hate having to sell under these circumstances, we will be able to utilize the sale proceeds to aggressively expand and accelerate our acquisition activity. It should also be noted that despite a large percentage of the portfolio being in the San Fernando Valley, we are still very committed to investing in this area.” For example, the company purchased Sage Creek South, a 94-unit apartment building in Simi Valley in December.
Pacillio tells GlobeSt.com that the properties up for sale are as follows:
*Independence Plaza, located in Canoga Park, CA is listed at $16.21 million. It is a 100-unit class B project built in 1985 that was acquired off market at an estimated 25% discount to replacement cost.
*Chatsworth Pointe in Chatsworth, CA is listed for $16.1 million. It is a 116-unit class B community built in 1978 and acquired from the original developer.
*Estancia in Riverside, CA, is listed at $32 million. It is a 208-unit class A luxury apartment community constructed in 2001. The property, located in the center of Southern California’s Inland Empire, offers 13 two-story buildings, a resort-style pool, a fitness center and 83 enclosed garages.
*The Aventine at West Hills in Canoga Park, CA, is listed at $20.5 million and is 102 units.
*Siena at West Hills in Canoga Park is listed at $14.25 million and is 112 units.
*Sorrento in Canoga Park is listed at $12.77 million and is 102 units.
*Northview/Southview in Reseda, CA is listed at $21.5 million and is 160 units.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
