Joint Venture Acquires LA Communities
- Jul 27, 2017
In three separate deals, Strategic Housing Partners LLC and Rockpoint Group have acquired two apartment portfolios and one other apartment community in the metro Los Angeles area, bringing more than 1,200 units into its portfolio.
“Our company’s philosophy is we are looking for very attractive, risk-adjusted returns throughout the multifamily space, primarily focused on Southern California,” Steven Ludwig, Strategic Housing Partners’ principal, told MHN. “We are always searching for good deals, regardless of asset class or location.”
The joint venture will initiate numerous capital improvements to transform all the properties and enhance the overall value proposition for renters and the local communities.
“We do something very unique and special on the renovation front, compared to what competitors are doing,” Ludwig said. “Our renovations are incredibly innovative and we deliver a very high-end product but at a new rental price that is measured with the market.”
The San Fernando Valley Portfolio
The San Fernando Valley Portfolio, with properties located in Panorama City, North Hills, Van Nuys and Canoga Park, consists of 14 buildings overall and 592 garden-style apartment units.
Ludwig said the plans for these units include adding new interiors with upscale finishes, such as kitchens with granite countertops and wood-inspired plank flooring. Meanwhile, the exteriors will be redone to include designer paint schemes and wood cladding, plus new landscaping for each.
“The appeal of this portfolio is we were able to aggregate a sizable portfolio of assets in a very competitive Southern California market for a very attractive price and substantial upside in the deal through deploying our business plan, which is recapitalizing, renovating and replacing management,” he said.
The South Bay Portfolio
The 506-unit South Bay Portfolio is comprised of primarily two-bedroom townhomes in the South Bay submarket of Torrance. Renovations will include updated unit interiors, including the addition of new kitchens with quartz countertops, waterfall edges, and full-slab quartz backsplashes.
“To be able to amass that many buildings, that many units and that much land in such a fantastic market as Torrance is, is such a rare opportunity, and one I haven’t seen in my 15 years,” Ludwig said.
The final deal was the purchase of Marathon Towers, a 94-unit community in East Hollywood. The redevelopment plan includes a complete, high-end interior renovation of all units and the addition of new amenities, including an outdoor pool and lounge, fitness center, and on-site leasing office.
“Residents within the Los Angeles community are desperately seeking affordability but they don’t want to win in cockroach heaven, so for us to be able to provide exceptionally attractive living at a relatively affordable price is something we are proud to do for the community,” Ludwig said. “These three acquisitions are a perfect fit with our investment criteria, given the strength of the existing fundamentals in each submarket and demand for quality multifamily product throughout Southern California.”