Portions of Major Los Angeles Portfolio Sell

Marcus & Millichap represented the private investor in its disposition of portions of a larger 26-property collection.
Wilmington Portfolio. Image courtesy of Marcus & Millichap

A private investor has sold off two portfolios in Los Angeles that were part of its larger 26-property, 642-unit Armor Portfolios. The communities have a projected value of $112 million. 

The investor assembled the expansive portfolio of multifamily properties over a 35-to-40 year period, according to Marcus & Millichap, who represented the private investor and its trust, Private Trust Management Group. The two sales included the First Five Portfolio, which sold for $18.05 million to Golden Bee Properties, and the Wilmington Portfolio that sold for $9.4 million to Cipolla Revocable Living Trust. The First Five included five apartments with 105 units, while the smaller Wilmington portfolio included three properties and 62 units.


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The overall Armor Portfolios also includes the Mid-City Portfolio, an eight-property collection totaling 175 units, that is under contract for $37.2 million. The remaining portion of the overall portfolio is the Amor Collection, a 10-property portfolio that spans 300 units in Los Angeles’ Westlake neighborhood.

Neema Ahadian, senior vice president of investments for Marcus & Millichap’s West Los Angeles office, said the Amor Collection is a strong value-add opportunity located in an up-and-coming neighborhood. The properties are located very close to each other and come in at $158,500 per unit, Ahadian added.

Tony Solomon, first vice president & regional manager of Marcus & Millichap’s West Los Angeles office, said the Armor Portfolios were one of the largest privately owned collection of multifamily portfolios to hit the Los Angeles market in the last several years.

HIGH DEMAND FOR LA

The new owners of the Armor Portfolios properties are likely to see healthy returns as the metro market is still doing well and could even use more supply, according to Yardi Matrix’s summer report of the Los Angeles multifamily market.

Roughly 26,500 units were under construction while more than 130,000 units were still in the planning and permits stages as of June. According to the report, there will be 10,435 units delivered by the end of 2019, which will be quickly absorbed due to the high demand for apartments in Los Angeles. The fast absorption and high demand goes hand-in-hand with rent growth in the area, which increased 3.2 percent in the Los Angeles area to $2,226 with expectations of rising to 3.5 percent by the end of the year.