BEVERLY HILLS, CA—Pacific Reach Properties has purchased Blu Beverly Hills, a 37-unit, 11-story apartment complex in a 1031 exchange, GlobeSt.com has learned exclusively. The purchase price of the property was not disclosed, however, industry sources unrelated to the deal say the property traded hands for $29.6 million.

“Beverly Hills has long established itself as a desirable place to live,” Vera Liu, director of acquisitions at Pacific Reach Properties, tells GlobeSt.com. “Given the overall economic growth in Los Angeles County and strong real estate fundamentals, demand for Beverly Hills will continue to strengthen. Our business model is providing high quality luxury accommodations, a model that requires the right product and a professional, service oriented team in order to successfully execute. Blu's origin as an office building gave it unique features that would be difficult to replicate within today's development landscape; it has an 11-story stature, ample secured parking, a prominent location on Wilshire and proximity to the future Wilshire/La Cienega Station. It is a one of a kind building and a logical acquisition given our business model.”

Located 8601 Wilshire Blvd. in Beverly Hills, the property has a mix of one- and two-bedroom units ranging in size from 786 square feet to 1,253 square feet. The building features a fitness center, rooftop lounge, media room, 24-hour concierge and valet, as well as 650 square feet of retail space. The location paired with the healthy building amenities attracted tremendous interest in the sale of the property, from local and international buyers. “Given the low interest rate environment as well as strong competition from overseas investors, it is definitely a seller's market,” says Liu. “Our competitors from overseas have different investment goals and investment metrics than ours and often are not necessarily looking at typical return metrics. We are able to stay competitive by recognizing and unlocking value that may not otherwise be identified by another group. We are highly opportunistic and we're not afraid to roll up our sleeves and take on a complicated business plan if it means we can create material value.”

Pacific Reach is the sister corporation of Retirement Concepts, and this is the company's seventh L.A. acquisition. Last October, it purchased National City Tower in Downtown Los Angeles for $43.3 million. It is focused on purchasing high-end properties in appreciating markets, making this Beverly Hills property a great fit. “People want to live here, but there isn't enough supply within the city's tiny footprint of less than 6 square miles. Half of the population rent, and they're in Beverly Hills for a reason,” says Liu. “They want all-around, high-quality accommodations, but that's not easy to find in a small city with limited substantial new development. Blu is an excellent fit for the target demographic and the demand for luxury rental in the city.”

“This acquisition is yet another example of global capital investing in A-class properties in A-class locations in the United States,” adds Andrew Kirsh about the transacation. Kirsh, Mark Nicoletti and Michael Floryan law firm Sklar Kirsh LLP provided legal counsel to Pacific Reach on the transaction.