LA Community Sells for $26M
An institutional investment fund purchased Morton Gardens, a 66-unit community in the city's Echo Park neighborhood.
Clear Capital has sold Morton Gardens, a 66-unit property in the Echo Park neighborhood of Los Angeles. The buyer, an institutional investment fund, has purchased the asset for $25.5 million. Institutional Property Advisors (IPA), a division of Marcus & Millichap, represented the seller in the transaction and procured the buyer.
The property is located at 1811 Morton Ave., only a 15-minute drive from Hollywood, downtown Los Angeles, Glendale and Burbank, thanks to its proximity to freeways 101, 110, 5 and 2. The community is within walking distance of Elysian Park and less than a mile away from Dodger Stadium.
Built in 1972, Morton Gardens offers one-, two- and three-bedroom apartments in three three-story buildings. Amenities include a playground and on-site leasing office.
“This transaction is a great example of a current trend in Los Angeles, where institutional investors are purchasing smaller communities from local owners to participate in the region’s impressive rent growth,” said Paul Darrow, vice president of investments at IPA, in prepared remarks. “Many neighborhoods that are seeing the most rent growth lack communities with the size and scale institutional investors typically purchase. As a result, we are seeing institutions who believe and want to own in Los Angeles grow their footprints by acquiring smaller communities.”
Parkwood is another recent example of this trend. The 78-unit property in the Los Feliz neighborhood traded for $20 million.
Image courtesy of IPA