(Save the date: RealShare Apartments comes to the Westin Bonaventure, Los Angeles, October 24.)
LOS ANGELES-GlobeSt.com has exclusively learned that a 256-unit eight-property “Rand Portfolio” located in the San Fernando Valley here has changed hands for $25.45 million. The seller of all eight properties was Samuel Rand Investments.
The transactions were negotiated by Christopher J. Malcolm of the North Los Angeles office of Hendricks and Partners on behalf of the seller. David J. Harrington, also from Hendricks and Partners North Los Angeles office, also co-brokered the transactions of the Ellen Laurie, Valley Laurel and Valley Vine properties, representing the buyers.
When asked about selling the portfolio as a whole versus as individual assets, Malcolm tells GlobeSt.com that the seller had always planned to sell the assets individually. “We were approached to acquire them as a portfolio, but were able to get higher proceeds with individual sales,” he says. “There is a lack of quality product in the 20-80 unit range, and these assets were impeccably maintained for 40 years by the owner.”
The portfolio closed over the past half-year or so, with the most recent sales closing in mid-July. The Owens Park apartments are located at 8120 Owensmouth Ave. and the San Orion apartments are located at 8036 Owensmouth Ave. in nearby Canoga Park. Each of the communities were built in 1959, consist of 20 units and sold for $1.96 million or $98,000 per unit. The buyer of Owens Park and San Orion was Capri Equities LP, of Ventura, CA.
The Kestona apartments also sold in July and are located at 6245 Kester Ave. in Van Nuys. Built in 1964, the 56-unit property sold for $5 million or $90,179 per unit. Prior to the Kestona transaction, the 50-unit Sylemona was sold in early July for $5.05 million or $101,000 per unit, located at 6220 Lemona Ave.in Van Nuys. The buyer of Kestona and Sylemona was Strike Zone LP of Sherman Oaks, CA.
In late June, two North Hollywood multifamily assets sold, Ellen Laurie and Valley Laurel. The 24-unit Ellen Laurie apartments are located at 7725 Laurel Canyon Blvd. The property sold for $2.35 million, or $97,917 per unit. The Valley Laurel apartments, located at 7733-7739 Laurel Canyon Blvd., sold for $2.5 million or $96,154 per unit. The buyer of Ellen Laurie and Valley Laurel was MKJS Enterprises of Sylmar, CA.
Bell Ann and Valley Vine apartments were the first two deals in the portfolio negotiated by Hendricks and Partners. Consisting of 24-units, Bell Ann is located at 18552 Clark St. in Tarzana. The property sold in May for $3 million or $125,000 per unit. The buyer of Bell Ann was 1800 Gold LTD of Sherman Oaks, CA. Valley Vine, a 36-unit property, located at 6717 Wilkinson Ave., sold on November 10, 2011 for $3.58 million or $99,444 per unit. The buyer was Lot Burbank Partners LLC of Burbank, CA.
According to a recent apartment market report for L.A. County from Marcus & Millichap, healthy private-sector job growth and a wavering single-family housing market will prop up the Los Angeles apartment sector through the year. “The county’s diverse demographics and large talent pool make it attractive to major corporations and small businesses alike,” the report says. “In fact, year to date, net absorption of office space has reached 723,000 square feet, underscoring the interest of businesses to be in one of the largest metros in the country.”
In addition, according to the report, low interest rates and strong buyer interest will motivate apartment owners to list assets in 2012. “As property holders observe prices near peak levels, they will likely bring assets to market after missing the window of opportunity from 2004 to 2006.”
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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.
