Expanding its value-add portfolio in the Los Angeles area, Cityview has teamed up with Clarion Partners to purchase a 276-unit community in Burbank, Calif. The two firms jointly acquired Empire Landing for $161 million from Nuveen Real Estate, Devang Shah, managing director of Cityview, told Multi-Housing News.
The garden-style community offers traditional apartment units alongside 41 three-story townhomes that have two-car garages with direct access. Shah also told MHN that the units range from 759 to 1,543 square feet for the one- and two-bedroom apartments, while the townhomes offer two-, three- and four-bedroom floorplans.
The units were built with a gas fireplace, patio or balcony, extra storage and in-unit washers and dryers. Empire Landing’s amenities include a pool, clubhouse, courtyard, fitness center, business center, night patrol, bike racks, package receiving and garage parking. Shah told MHN that the community is 93 percent occupied.
Shah said in prepared remarks that the Burbank community is located in one of the most job-rich, high-growth economic areas of Southern California. Shah also said in his prepared statement that the city has a high demand for quality rental housing like Empire Landing. According to Cityview, the community is located in an area with approximately 10 million square feet of office space within a 10-mile radius, where a majority of it is leased to media companies.
CITYVIEW’S VALUE-ADD STRATEGY
Similar to other value-add acquisitions, Cityview and Clarion are planning a comprehensive renovation of Empire Landing’s common areas, amenities and interiors. The new ownership will update the design and functionality of the amenities while also revamping the leasing experience. Clarion and Cityview will also update the design of the units while installing high-end finishes and appliances.
Cityview has also reached its 20th value-add acquisition in the Los Angeles area in the past three years with Empire Landing. However, Shah told MHN that the firm is also actively pursuing opportunities in other major West Coast metros, besides Los Angeles.
“Cityview typically searches for Class B and C properties located in premier urban and suburban locations, that are close to job centers, and are a discount to Class A and well below replacement costs after renovations,” Shah told MHN.
Outside the value-add acquisitions, Cityview is also working on two opportunity zone projects in California. In May, the firm raised $100 million in equity for a 378-unit community located in an Oakland, Calif., opportunity zone. Last year, Cityview also landed $125 million in funding for its 296-unit project in an opportunity zone in Los Angeles near the University of Southern California campus.