Champion Real Estate Co. has sold Victory on Ellendale, a 96-bed student housing community in Los Angeles, for $20.5 million. The firm acquired the property in 2018 for $12.5 million.
Thanks to strong market fundamentals and cap rate compressions, Champion has decided to exit the investment early, despite the company’s strategy to hold deals for long-term cash flow, Senior Vice President Garrett Champion said in prepared remarks.
Due to generally high costs of living across California, the University of Southern California is one of the most expensive university markets, with rents reaching $2,476 per bedroom as of December, the latest Yardi Matrix report shows.
Overall, Champion owns five student housing properties near the University of Southern California. Nonetheless, the Los Angeles-based company is also active in other markets, including Seattle and Lansing, Mich. At the end of last year, the firm paid $42 million for a 524-bedroom portfolio in East Lansing, Mich.
Completed in 1963 and renovated in 2019, Victory on Ellendale comprises 24 units, equipped with stainless steel appliances, quartz countertops, cabinetry and vinyl plank flooring. Champion has upgraded the bathrooms and repainted each unit.
Located at 2652-2656 Ellendale Place, the asset is within half a mile of the University of Southern California and 1 mile of the LA Memorial Coliseum. The property is close to a Trader Joe’s store and numerous dining options, positioned across Victory on Ellendale.