Laguna Point Properties has secured $328.8 million in financing for its acquisition of a five-property portfolio in downtown Los Angeles. JLL’s Charles Halladay, Jamie Kline and Charlie Vorsheck represented Laguna Point and secured the three-year, floating-rate acquisition loan that has two 12-month extension options. The lender was MF1 Capital LLC.
The 1,037-unit portfolio includes five downtown Los Angeles communities, four of which are historic pre-war buildings and the other is a community from 1959 that was converted from an office. Each of the five communities also underwent conversions between 2007 and 2010, according to JLL. The portfolio is made up of the 184-unit Lofts, the 214-unit Main, the 198-unit Manhattan, the 178-unit Spring and the 263-unit Tower.
Garrett Labar, director of acquisitions and dispositions for Laguna Point, said in prepared remarks that this transaction was an opportunity for Laguna Point to re-enter the Los Angeles market. The company had previously sold a 91-unit community in Los Angeles called 37th Place Apartments. Labar added in his prepared statement that the portfolio will likely benefit from the increasing demand for rental housing caused by employees returning to work and the strong fundamentals seen with downtown Los Angeles.
FOCUSED ON WESTERN, SOUTHEASTERN U.S.
Besides its re-established presence in Los Angeles, Laguna Point also previously sold a 120-unit community in Moreno Valley, Calif. But, the company has invested in other western U.S. states like Arizona, Nevada and Utah, along with a handful of properties in Florida. Now, Laguna Point and its affiliates have acquired more than 6,500 units with a total capitalization of $758 million.
In February 2021, the company expanded its Albuquerque, N.M., footprint by acquiring a three-property multifamily portfolio from PacifiCap Properties Group. More recently, Laguna Point Properties sold its 208-unit community in Paradise, Nev., which was owned along with The Midtown National Group, for $41.5 million.