IPA Arranges $57M Sale of Luxury CA Community
- Oct 31, 2017
Institutional Property Advisors (IPA), a division of Marcus & Millichap arranged the sale of Luxe, a 131-unit luxury community in Pasadena, Calif., for $57.2 million or $437 per unit. The cap rate is 3.7 percent. The firm represented the seller and developer, Amcal Equities LLC and procured the buyer, a private investor based in China.
Situated at 1769 E. Walnut St., Luxe is adjacent to a Metro Gold Line station and delivers a rare pedestrian- and mass-transit oriented location. Besides these, the property provides access to State Route 134 and 110 and 210 freeways. Built in 2016, the asset occupies nearly two acres of land and comprises a mix of studio, one- and two-bedroom apartments, averaging 731 square feet.
“LUXE is one of the premier multifamily assets in the San Gabriel Valley,” said Greg Harris, executive managing director at IPA, in prepared remarks. “Purchased by an international investor making their first purchase in the United States, the property is supported by strong market trends, including high demand for luxury apartment homes, a significant affordability gap to home ownership and a scarcity of new supply.”
According to Joseph Grabiec, senior director at IPA, Pasadena has experienced 12 percent rent growth since 2014, and it is expected to increase nearly 3 percent annually. The average vacancy rate will hold steady at around 3.6 percent.
Image courtesy of Institutional Property Advisors