PARAMOUNT, CA—A joint venture between Bridge Investment Group Holdings and Starr Cos. has purchased the Enclave apartment complex from Kennedy Wilson for $61.1 million. The 306-unit multifamily property is the market leader in the Paramount, CA, submarket. The buyers plan to renovate the property so it can compete with market rents in the surrounding area.

“The property is the market leader in the submarket, but if you look outside of the immediate Paramount area, there are some projects that are consistently out performing,” Kevin Green, a director at Institutional Property Advisors, a division of Marcus and Millichap, tells GlobeSt.com. “The buyers felt like there was an opportunity to improve the asset and allow it to compete better with markets outside of Paramount, like Norwalk, Lakewood, Downey and Bellflower. Those are all higher rental level markets, and they felt like they could help bridge that gap by improving the property.” Green represented the seller in the transaction, along with EVPs Greg Harris and Ron Harris, directors Joseph Grabiec and Paul Darrow and associate director Michael DiSimone.  

The team received strong interest from potential buyers, and toured the site to 20-plus investor groups, both private and institutional. “This was an opportune time for Kennedy Wilson to exit,” says Green. “They felt like this was a good time to take advantage of the rising rents in the market and sell the property to a market-rate operator.” The sales team settled on the joint venture, who was buying on behalf of a discretionary fund, because of their strong record in the marketplace and their vision for the property, which includes upgrading the interior units and the common areas to allow the property to compete with properties in the surrounding markets.

Located at 13801 Paramount Blvd. in Paramount, the 306-unit property sits on 4.7 acres and offers easy access to the 91 and 105, 605 and 710 freeways and four metro lines. The interior units have 10-foot ceilings, walk-in closets and private balconies, while the onsite amenities include a fitness center, a resort-style swimming pool, spa, sundeck and a 656-stall parking garage. “There is a lack of multifamily product in Paramount, so acquiring 306 units gives you a significant holding in the market,” says Green.

Pendo Investments recently purchased two properties in the area as part of a $46.5 million three-property portfolio purchase. The two properties are a 95-unit 1970s vintage complex in Downey, CA, and a 16-unit 2006 vintage complex in Bellflower, CA. Like this transaction, Pendo plans to make a value-add play, investing an additional $12 million into each property.