SCS Development Purchases 163-Unit California Multifamily for $87M

SCS Development Company, Inc. has purchased a 163-unit multifamily property in Monrovia, California for $87.25 million.

The cost of the asset, called Paragon at Old Town, comes out to $535,276 per unit. Tenants get to choose from six-floor plans, which span from 744 square feet to 1,247 square feet.

Amenities at Paragon at Old Town include a fitness center, game room, swimming pool and spa, resident lounge, outdoor lounges, courtyards, and private cabanas. Plus, the property comes with 6,077 square feet of ground-floor retail. The retail space is fully occupied by restaurants, an undisclosed sporting goods store, and a UPS Store.

Plus, major brands are close by including Target, Walmart, Vinyl Technology, and L3Harris.

Marcus & Millichap’s subsidiary Institutional Property Advisors represented the seller, which was Sequoia Equities. The North American CRE firm also procured SCS.

“The sale is one of only two Los Angeles County multifamily assets of 150 units or more and the only one outside of West LA to trade for over $500,000 per unit in the last 12 months,” said Green of IPA.

“The sales price reflects the value of the asset’s exceptional location within walking distance of many shopping boutiques and restaurants along Myrtle Avenue, and in Old Town Monrovia.”

Also, the submarket has recorded just over a three percent vacancy over the past year, according to IPA.

But California’s multifamily market in general is expected to see significant growth. In fact, 60 percent of CRE participants expect demand to outpace supply in Northern California in the coming years. For Southern California, that number is a little lower at 57 percent. Plus, 56 percent of respondents think Silicon Valley rents will increase faster than the rate of inflation, compared to 27% in a previous survey.