GLENDALE, CA—A private investor has sold the Adams Street Apartments in Glendale for nearly $2 million over the list price in a 15-buyer bidding war. The property is located in a great location and has a value-add component and rental upside, which helped to attract strong buyer interest. However, with prices hitting their peak in more primary L.A. markets, we may be seeing more and more investors heading to the tri-cities market this year.

"I am seeing a lot of buyers, whether institutional or private, starting to look at Glendale, Pasadena and Burbank as a market that has a lot of upside in rents," David Leibowitz, VP at Investment Real Estate Associates, tells GlobeSt.com. "I think you are going to see some leveling off in general with the Fed raising the interest rate, and there is going to be an impetus to have the market somewhat stabilize. But, even with interest rates starting to go up, which could stabilize the market, there are a lot of eyes looking at potential for rent growth in these areas as far greater than comparable locations. I think that 2016 is going to be a very strong year." Leibowitz represented the buyer and the seller in the transaction, along with EVP Chris Thompson.

The property traded hands for $21.1 million, and came to market with a $19.4 million list price. Right away, the sales team received an aggressive above-market offer, and the prices continued to escalate from there. "We exposed this fully to our buyer pool and on the Internet, and there was a tremendous amount of interest for this property," adds Leibowitz. "The property has a value-add component, low rents and a fantastic unit mix. We got an all-cash, non-contingent offer right away that was over the asking price. There were a handful of offers that really wanted the deal, and it just became a bidding war. We made it through a couple of rounds, and went to a best and final round and all of those offers were above the asking price."