LOS ANGELES—Ness Holdings has acquired two properties in high-growth markets in Los Angeles, with plans to reposition both as class-A assets. One property is located on Abbott Kinney in Venice, which will be repositioned as a high-fashion retail store or high-end restaurant, and the second property is an apartment building located on Carlton Way in Hollywood, which will undergo a intensive capital improvement plan to become a high-quality multifamily asset. Ness Holdings paid a total of $15 million for the two properties.

“The underlying theme for both properties is that they are both inventoried for class-A product,” Daniel Mense, director at Ness Holdings, tells GlobeSt.com. “The opportunity to acquire such high-demand assets was really the key driver for us. These were both off-market deals, which is really our niche because we are value-add investors. Both of these deals had a discount to market in terms of the value, and because we were able to avoid the whole marketing process, we were able to skip a competitive bidding war. As a result, we acquired these at what we felt was a significant discount to market.”

Located at 1637 Abbott Kinney, the retail property was purchased for $7.4 million. A Wabi Sabi Sushi restaurant currently occupies the rare freestanding property. Ness Holdings plans to reposition the asset and bring in a new high-end tenant, with a retailer or a restaurant. Mense declined to comment on the amount of capital they plan to invest into the property.

The multifamily property is located at 5535 Carlton Way in Hollywood, where investors have been scooping up multifamily deals. The property has 36 units and onsite parking. Mense says that they plan to invest $1.5 million for the improvement plan, which will be thorough. “We are going to update the units and potentially provide some amenities, like a gym facility, as well as update the common areas to create more of a communal feel,” he says. “We really want to bring the property in line with what that whole market is shifting towards, which is better quality product for renters.”

Ness Holdings typically resells its properties after implementing its improvement plan, however, these properties will be held longer. “These will be a little bit of a longer-term hold than typical,” says Mense. “We may hold these for two to three years and then look to make an exit.”