LOS ANGELES—Ness Holdings, a private investment and development firm has acquired three multifamily properties in emerging Los Angeles submarkets for a total of $11.5 million. Totaling 62 units, the properties are located in Hollywood, Echo Park and Franklin Village. Ness Holdings plans to reposition all three properties into luxury apartment complexes.

“Apartment repositioning represents approximately 50% of our focus for acquisitions,” Steven Taylor, president and founder of Ness Holdings, tells GlobeSt.com. “These purchases fit our acquisition criteria because through the renovation and repositioning programs we put in place, we are able to turn the B asset into an A asset while increasing rents at the same time.”

Purchased for $4.4 million, the Hollywood property, located at 1812-1830 Wilcox Ave., has 24 units. The property has development entitlements, which include the option to divide the property into four separate transactions. Ness Holdings purchased the 28-unit Echo Park building, located at 2216 West Court Street, for $4.9 million, and the 10-unit Franklin Village property, located at 1759 Wilton Place, for $2.1 million.

According to Taylor, Ness Holdings plans to invest $5 to $7 per square foot on exterior renovations and $7,000 to $10,000 to renovate the interior units. All three of the properties have been neglected and are in poor condition. Ness Holdings plans to bring them to “market standards in order to attract the demographics that are seeking quality assets in prime rental markets.”

Overall, the investor is looking for similar value-add opportunities throughout the L.A. area. When asked about the submarkets where it is seeking opportunities, Taylor says, “all of them—from the beach to downtown and Northridge to LAX.” This has been true for the firm for some time. Last year, it purchased two properties in Los Feliz and the Mid-City for $6.2 million.