Ground Lease for LA-Area Property Changes Hands
- Dec 20, 2018
The ground lease to Citrus Court, a 138-unit apartment community in Whittier, Calif., has been sold to an East Coast-based private investment company by the Bascom Group. The property is on a ground lease through 2064.
Alex Mogharebi, founder & president of The Mogharebi Group, and Otto Ozen, TMG executive vice president, represented both the Orange County-based seller and the buyer in the transaction.
The Bascom Group had owned the ground lease to the property at 8121 Broadway Ave. since March 2014, when the asset was purchased for $13.4 million from The Korda Group, according to Yardi Matrix data. The property, located on nearly 5 acres, was built in 1967. The Korda Group had paid $15.5 million for the asset in April 2005, Yardi Matrix reported.
“Whittier, with its historically strong education system, improving retail mix, and centralized location is gentrifying. The seller did a brilliant job renovating Citrus Court with desirable amenities that are attractive to new tenants who are moving to Whittier,” Ozen said in a prepared statement. “Considering that this was a ground lease, we were able to generate strong interest in the asset and ultimately located the ideal buyer and got them comfortable with the ground lease. The buyer plans to finish the renovations to further increase investment yield.”
Citrus Court features one-, two- and three-bedroom floor plans with monthly rents ranging from $1,350 to $2,021, with an average rent of $1,782, according to Yardi Matrix. The property is centrally located near many shopping destinations and multiple high-rated schools.
- Two swimming pools
- Two laundry rooms
- Playground with BBQ area
- Pet park
- Fitness center, business center and clubhouse
- High-speed Internet access.
- Gate/controlled access
- Newly renovated interiors including stainless steel appliances
- Vinyl plank flooring
- Central air and heating
Last month, TMG arranged the sale of Twin Palms, an 83-unit community in Pomona, Calif., for $10.4 million. The firm represented the seller, Positive Investments, and the Los Angeles-based buyer. In March, the firm also brokered the sale of Four Creeks Apartment Homes in Visalia, Calif., for $19.2 million.
Image courtesy of The Mogharebi Group