Institutional Fund Snaps Up Glendale Apartments for $54M

Glendale, Calif.—Institutional fund manager Interstate Equities Corp. (IEC) has acquired a 126-unit multifamily property in Glendale, Calif., for $54.2 million. The deal marks the seventh acquisition within the firm’s IEC Institutional Fund III LP, a $200 million commingled fund targeting value-add multifamily investments in coastal California.

Currently known as Verdugo Village, the buyer will rebrand and rename the property Towne at Glendale. The community was originally built in 1965 and renovated in 2007 to condo specifications. It thus features high-end finishes, central air conditioning and other amenities characteristic of institutional-quality assets, according to Brendan Gibney, an acquisitions professional at IEC.

Gibney also noted that Glendale, one of the tri-city submarkets of Los Angeles County’s San Fernando Valley, is poised for economic growth. “The location in a durable submarket made this a strong acquisition that fits squarely into IEC’s investment strategy,” he said.

The Towne at Glendale is currently 96 percent occupied, and ICE will undertake a series of capital improvements to its existing amenities. Planned renovations include a major redevelopment of the main lobby and entrance; the installation of a new fitness center; upgrades to the existing onsite movie theater; and the addition of onsite storage for residents.

Adrienne Barr and Shane Shafer at Berkadia brokered the transaction. The acquisition loan was arranged by Peter Smyslowski.