IPA Secures Listing for Los Angeles High-Rise
- Oct 06, 2011
Los Angeles—Institutional Property Advisors has landed an exclusive listing contract for NoHo, a 180-unit high-rise urban infill community located in the Art District of Los Angeles. The asset, which was acquired by the owners as a condo, is currently being leased as apartments. IPA’s Greg Harris and Ron Harris (not related), both executive presidents, are representing the seller, a joint venture between Kennedy Wilson and two institutional investors.
“As the demand for rental units spiked in this area following the downturn of the single-family housing market, the partnership converted this complex into rental units,” says Greg Harris. “This property is one of the only core high-rise multifamily assets on the market in Los Angeles that will provide an investor with stabilized returns over the short and long term.”
NoHo 14 was constructed in 2008 and is located at 5440 North Tujunga Ave. The 14-story Class A tower has 208,238 rentable square feet, which includes 11,000 square feet of ground floor retail. Community amenities include a pool, spa, sundeck, theater room, garden, barbecue area, fitness center and 400 parking spots.
HFO and Colliers broker $34.3M portfolio to Security Properties
Beaverton, Ore.—HFO Investment Real Estate and the Seattle office of Colliers have partnered up and brokered the sale of a three community portfolio located in Beaverton, Ore., for $34.3 million.
“The three properties had a blended cap rate of 5.5 percent and were sold by a Canadian investor, Belkorp Holdings,” says Greg Frick, partner at HFO. “This sale generated a tremendous amount of interest and was purchased by Security Properties Inc. … this is an example of the Class B properties following the tremendous rebound we’re seeing in large new institutional properties. The Portland market is clearly on the map for institutional money.”
Willow Grove is a 119-unit community that was built in 1988. Unit size averages 935 square feet. It sold for $12.6 million, or $105,882 per unit.
Richmond Park is a 1985-built 100-unit community situated on 9.2 acres. Amenities include a clubhouse, pool, and fitness center. It sold for $12.1 million, or $121,000 per unit.
Richland Terrace is a fully-occupied 83-unit community that was also built in 1985. Its community amenities include a fitness center, clubhouse and pool. It sold for $9.6 million, or $115,622 per unit.
Radco Co. invests in two Atlanta multifamily properties
Atlanta–The RADCO Companies, the turnaround consultant, operator and asset manager, acquired two multifamily properties in Atlanta.
The first transaction, which closed on August 31, is the acquisition of Somerpoint, a 144-unit development on Austell Road in unincorporated Cobb County just north of Atlanta. Somerpoint is a boutique property that is underperforming the market and has been in receivership since December 2010 on behalf of a special servicer.
The second asset, which closed September 27, is called Flynt Ridge which is comprised of 77 two-bedroom townhome units that were built in 1986 and 1989. The property is located in Griffin, Ga., 30 minutes south of Atlanta’s airport. In a scenario similar to Somerpoint, RADCO plans to increase occupancy and rents through hands-on asset management, upgrades and repositioning the asset development.
With these two acquisitions, we have the opportunity to become our own client, bringing properties under the RADCO umbrella of services for comprehensive turnaround and building value,” says RADCO founder and CEO Norman J. Radow.
The transactions are being acquired through a closed fund RADCO raised in less than 10 days. It was oversubscribed. RADCO will utilize private markets and institutionalize equity funds to acquire additional assets.
Bank of North Georgia, a part of Synovus, supplied the financing. Both assets meet the fund’s criteria: they are bank assets; offered at a significant discount to the note amount; have great turnaround potential; and are located in areas where RADCO forecasts market improvement. “We look forward to putting our considerable toolbox to work at these turnarounds,” Radow says.