CP Capital Sells SoCal Community
The transit-oriented property is adjacent to the Metrolink commuter rail system.
CP Capital has sold The Gabriel, a 312-unit community in Pomona, Calif., in eastern Los Angeles County. At the time of the sale, the transit-oriented property was 94 percent occupied.
Located at 2771 North Garey Ave., The Gabriel is adjacent to the Pomona Metrolink Station, giving residents access to the commuter rail system of Southern California.
Floorplans include one-, two- and three-bedroom layouts, Yardi Matrix data shows. Apartment sizes range from 658 to 1,397 square feet.
Unit amenities at the community include smart home technology, such as Honeywell Wi-Fi thermostats, community video intercoms, keyless entry in common areas and ButterflyMX virtual keys. Homes also feature stainless-steel appliances, quartz countertops and plank flooring.
Common amenities include a pool, spa, fitness center, on-site retail, four park-like courtyards with fruit trees and outdoor seating, fire pits, a dog park and a pet wash. There is a club room, rideshare lounge, entertainment lounge, outdoor grilling area, 24-hour package locker area and covered bike storage space.
The company is optimistic that heightened levels of renter demand will persist long after the current wave of new supply is fully absorbed, according to CP Capital Co-Head Kristi Nootens.
In 2023, CP Capital divested itself of The Monarch, a 236-unit multifamily asset in the northwestern Chicago suburb of Des Plaines, which was entirely leased at the time of the sale.
Currently, CP Capital has three projects under construction: one each in Austin, Texas, Washington, D.C., and Philadelphia, which will deliver over 1,000 new units. The firm also has seven developments in active lease-up in Atlanta, Phoenix, Charleston, S.C., Denver, Tampa, Fla., and Boston, where it anticipates another disposition this fall.
LA multifamily softens
Los Angeles County was off to a slower start at the beginning of the second quarter of 2024. While rent growth did come out of negative territory, up 0.1 percent on a trailing three-month basis, year-over-year movement was negative, down 0.5 percent.
During the first half of 2024, the number of units sold in Los Angeles County decreased by 1.9 percent compared to the same period a year ago, totaling 11,019 units year-to-date, according to a NAI Capital report. The average sale price per unit saw a modest drop of 3 percent quarter-over-quarter but increased by 12.4 percent year-over-year. And the average cap rate increased by 30 basis points compared to last year, now standing at 4.9 percent.
One major concern for Greater Los Angeles multifamily is California’s Prop 33. The measure is up for a vote in November, and passage would give cities the ability to limit how much landlords can charge for a unit when a resident vacates. For investors in places with existing rent control—such as Pomona, Baldwin Park and Pasadena—this could pose a significant challenge.