SoCal’s Park Place Apartments sells for $10.2 Million
- Sep 14, 2012
By Jeffrey Steele, Contributing Writer
Canoga Park, Calif.—The 22-year-old, 61-unit Park Place Apartments in the northwest Los Angeles community of Canoga Park has sold for $10.2 million. That sum equates to $167,213 per unit, or $235 per square foot. The announcement of the sale was made by Marcus & Millichap Real Estate Investment Services, which brokered the deal.
The seller of Park Place Apartments, Newport Land Management LLC, was represented by Ron Harris and Joseph Smolen of Marcus & Millichap’s Los Angeles office. The buyer of the apartment community is a private investment group.
“The deal was appealing to the buyer, because the group has significant holdings in the San Fernando Valley, particularly nearby this property,” Harris, Marcus & Millichap executive vice president, investments, tells MHN.
“As a result, they had economies of scale in their management and maintenance. The seller was motivated to sell because it had done extensive renovation on the building, felt the market timing was right and believed it would be able to turn a profit.”
Park Place Apartments underwent substantial renovation just last year, which led to the property commanding higher rents and being positioned above competing properties in the area, Harris adds. Though the complex features 61 units, the attractiveness of the units and common areas, as well as sprawling grounds and a tennis court, provides the sense that residents are residing in a much larger, institutional-like setting, Harris says.
Also appealing to residents is the location of Park Place Apartments. The community is situated at 8700 DeSoto Avenue in Canoga Park, a site near a Los Angeles Metro stop that offers quick and easy access to Metrolink, Warner Center, Pierce College and California State University, Northridge. In addition, the Westfield Topanga, and Westfield Promenade shopping malls are both close by.
Built in 1990, Park Place Apartments offers seven individual, well-appointed floor plans. Each apartment home provides residents with kitchens with gas ranges, refrigerators, dishwashers and Formica countertops; large walk-in closets; central air conditioning and heating; private patio-balcony and ceiling fans. One- and two-bedroom floor plans average 713 square feet, while the entire property measures 45,712 square feet.
Among notable common area features are a state-of-the-art fitness center, sprawling resort-style swimming pool with furnished sundeck, shaded picnic area with barbecue and a fully lit tennis court.
Harris reports a minimum of problems arose in completing the purchase. “Believe it or not, it was a very smooth, seamless transaction in that the buyer’s offer was credible, their due diligence for two weeks found no issues, they had a two-month escrow and their financing came in right on target,” he reports “We were able to close on time. So really it was a very simple deal with no issues and no problems.”