LOS ANGELES-Private investors Sean Baker and Gary Simons of Upside Investments Inc. have acquired the Crenshaw Village portfolio in Baldwin Hills for $60 million, GlobeSt.com learns. The massive portfolio includes 65 buildings spread over 25 acres and 40 separate parcels. With 669 total units, the purchase price brings the per-unit cost to $89,700.

Institutional Property Advisors, the multifamily brokerage division of Marcus & Millichap, represented the seller, an unnamed private investor. The property garnered interest from a large group of private and institutional investors interested in purchasing the portfolio. “There were a double-digit number of offers comprising approximately 50% buyers with institutional equity or pure private-party buyers,” Ron Harris, executive VP of investments tells GlobeSt.com.

The competition might be attributed to new developments popping up in the area, like the Kaiser Permanente office building and a future light rail stop that will provide an easy commute to the Los Angeles International Airport. “The property's tremendous potential is further enhanced by the large amount of public and private investment taking place in the immediate area,” says Harris.

Baldwin Hills Crenshaw Plaza also recently underwent a two-year renovation, completed last summer for $35 million. Owners Capi Urban Investors LLC launched the renovation to create community “hub” for the Crenshaw neighborhood.

Crenshaw Village, on the other hand, has not undergone a major renovation since its construction in 1948. The buyers, however, saw this as an opportunity to add value enhancements through a renovation program, according to Michael DiSimone, IPA associate.

David Pascale of George Smith Partners Inc. arranged financing for the purchase through two Fannie Mae loans, for a total of $42.7 million with a 30-year amortization.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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