PCCP has provided a $76.3 million senior loan for the acquisition and renovation of The Enclave, a 306-unit apartment community in southeast Los Angeles County. A joint venture of MWest Holdings and BentallGreenOak recently picked up the asset in Paramount, Calif., from Bridge Investment Group for an undisclosed amount.
Built in 1991, the property is located at 13801 Paramount Blvd. and consists of six low-rise residential buildings and one recreational building across a 4.9-acre lot. The community features units ranging from one to three bedrooms with an average size of 970 square feet, equipped with gas fireplaces and outdoor space. Common amenities include a fitness center, pool, dog run and underground parking.
Rents range from at least $1,697 for a one-bedroom unit to $2,794 for a three-bedroom unit and the property is about 93 percent occupied, according to Yardi Matrix. Bridge Investment Group acquired the property from UBS Realty Investors in 2015 for $61.2 million.
The Enclave is Paramount’s only apartment community with more than 50 units to be developed in the last 30 years, according to a statement by PCCP. The submarket of Los Angeles County has a multifamily vacancy rate of less than 3 percent, with virtually no new supply having come online over the past two decades.
Buying in a tight market
MWest, which has a portfolio of more than 2.5 million square feet of residential and commercial property across the U.S., noted in a statement that the deal represented an ideal value-add acquisition as part of the company’s broader buying strategy in the Los Angeles area.
The transaction was announced on the same day that MWest said it had sold two historic properties in Los Angeles for a total of $64.2 million. The company offloaded Guardian Arms, a 101-unit community along Hollywood Boulevard, for $26.2 million, handing off the property to ROM Investments after seven years of ownership. MWest also sold Park Wilshire, a 170-unit community between Koreatown and downtown Los Angeles, to Midwood Investment & Development for $38.2 million.
BentallGreenOak, formed last year by the merger of Bentall Kennedy and GreenOak Real Estate, has roughly $48 billion of real estate assets under management. The company is an affiliate of Sun Life arm SLC Management.