San Fernando Valley Community Scores $73M

Marcus & Millichap's IPA division closed the sale of one of only two multifamily assets in Chatsworth, Calif., with more than 200 units.
Waterstone Apartment Homes, Chatsworth, Calif.

Waterstone Apartment Homes, Chatsworth, Calif.

Chatsworth, Calif.—Marcus & Millichap’s Institutional Property Advisors division has closed the $72.5 million sale of Waterstone Apartment Homes, a 348-unit community in West San Fernando Valley. The sale price equates to more than $208,000 per unit.

IPA executive directors Greg Harris and Ron Harris, along with senior directors Kevin Green and Joseph Grabiec and director Paul Darrow represented the seller and found the buyer.

The buyer was not disclosed, but the seller was Legacy Partners Inc., which bought the property in 2006 for $52 million from SARES-REGIS Group, according to Commercial Real Estate Direct.

“Chatsworth’s highly rated public schools, low unemployment and strong projected household income growth, combined with low vacancy and a lack of new supply, make it an excellent place to invest in multifamily assets, especially large, high-end properties like Waterstone Apartment Homes,” said Ron Harris.

Located at 9901 Lurline Ave., the community was built in 1971 and offers amenities like a clubhouse with billiards, swimming pool, spa, lighted tennis court, barbecue/picnic area and fitness center. Units come in studio, one- and two-bedroom floor plans and range in size from 503 1,027 square feet. The property is located one block south of the 615,400-square-foot Westfield Topanga shopping mall and one mile from the Chatsworth Metrolink station. Nearby major employers include Aerojet Rocketdyne, Anheuser-Busch, Boeing, Health Net, Nestle and The Walt Disney Co.

The four-building community is one of just two apartment assets in Chatsworth with more than 200 units and received more than $1.6 million in major upgrades over the past five years, Greg Harris said.

“The acquisition gives new ownership the ability to complete a strategic renovation in a market where there is a significant affordability gap to home ownership and strong demand for high-end rental housing,” said Green.