Private Investor Wins Institutional Asset

The property has 45 total units.

LOS ANGELES—A private exchange buyer has purchased the Micropolitan at Urban Lights , a 45-unit institutional-quality multifamily asset, from the Micropolitan , a subsidiary of Psomas . The four-story property was built in 2015. The buyer purchased the property for $27.1 million, or $602,000 per unit. “This was in their business plan from the jump,” Paul Darrow , a director at Institutional Property Advisors , tells GlobeSt.com about the seller’s decision to bring the property to market. “They buy, build and sell these types of assets. It all starts with market timing, and when they first developed the business plan, they saw that there was a good story in rents and value because of where the market is. This is all in the context of this being a good market with strong rents and a lot of capital.” Darrow represented the seller in the transaction, along with his colleague, director Ron Harris . The property received double-digit offers from investors that were attracted to the quality construction and the close proximity to public transit. “It is hard to find new construction, and there hasn’t been a lot of this size come to market,” says Darrow. ‘This area has a great balance between residential and still walkable and urban. This neighborhood has a lot of generational owners, and if you go further north, the single-family homes are millions of dollars. If you wanted to live in the area, renting is really your only option.” The marketing process took 60 to 90 days, and had a wide range of buyers, including groups from New York, corporate housing, family offices and groups out of Canada. The team settled on the local buyer for certainty of close and local knowledge. “There were other offers that were competitive,” adds Darrow. “They were in the area already and they were a local investor. It all clicked, and we felt like they were the best opportunity to close.” Located at 739 South Ogden Drive, the property has a mix of one- and two-bedroom units, ranging in size from 729 square feet and 1,036 square feet. The Miracle Mile market has seen 5.6% rent growth in the last year and has a vacancy of 2.6%.