LOS ANGELES-Vista Investment Group has sold a three-building multifamily portfolio with 107 total units in Koreatown. The buyer purchased the portfolio for $8.8 million, but took over the existing first trust deed, which added a supplemental debt to the loan balance.

Due to the assumed supplemental debt, the transaction was complex. The buyer secured three loans above market rate with low leverage. “Our emphasis on building strong and lasting bonds with our clients ultimately benefits everyone involved,” says Madison Partners partner Darin Beebower, who represented both the buyer and the seller in the transaction.

Vista Investment Group purchased the portfolio in 2009, and felt the current market offered the best return. “These vintage Koreatown properties are well located and offer an excellent opportunity for value enhancement through renovation and repositioning within this vibrant market,” says Beebower. The buyer plans to renovate the unit interiors and mechanical systems to warrant the rising rents in Koreatown.

The three buildings are located on the same block at 407, 530 and 531 South Kenmore Avenue. Each property has between 27 and 40 bachelor, studio and one-bedroom units.

Koreatown has been undergoing redevelopment. ST Residential recently completed the Solair mixed-use condo complex in the submarket, and recently sold a 41,000-square-foot retail space on the ground floor of the building to a private investor.

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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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