Prime Residential Pays $62M for LA Asset
Institutional Property Advisors represented the seller and procured the buyer.
Prime Residential has acquired AVA North Hollywood, a 156-unit community in North Hollywood, Calif. AvalonBay Communities sold the property for $62.1 million. Institutional Property Advisors, a division of Marcus & Millichap, arranged the transaction.
Manufacturers and Traders Trust Co. originated a $40.2 million Freddie Mac loan for the asset, set to mature in 2034, Yardi Matrix data shows.
AVA North Hollywood previously traded in 2016, when AvalonBay purchased the community for $72.1 million from a joint venture led by Amstar, the same source reveals. Chandler Pratt & Partners, a Los Angeles-based developer, was part of that venture.
READ ALSO: Multifamily Retains Appeal Despite Some Bumpiness
Following the transaction, Prime renamed the property Hue North Hollywood. The community also went by the name of Studio 77 prior to AvalonBay’s purchase nearly a decade ago.
Completed in 2015, the five-story community encompasses studio and one- to three-bedroom floorplans, ranging between 475 and 1,251 square feet. Apartments feature 9- to 14-foot ceilings and private patios. Select units provide additional balconies.
Community amenities include a swimming pool, spa, clubroom, gym, sky deck and business center. Additionally, the property features 11,000 square feet of ground-floor retail which is currently 100 percent leased. The space is occupied by quick-service restaurants, a gym, as well as a spa and massage parlor.
Located at 5077 Lankershim Blvd. in the NoHo Arts District, AVA North Hollywood is roughly 1 mile from U.S. Route 101, while the Hollywood Burbank Airport is within more than 4 miles northeast. Multiple parks, including North Hollywood and Valley Village, are within walking distance.
Employers in the entertainment industry situated nearby include Netflix, Walt Disney Studios, Warner Brothers, NBC Universal, Paramount Pictures, DreamWorks Animation, ABC Studios, Nickelodeon Studios, CBS and Universal Studios.
IPA Executive Managing Directors Kevin Green and Gregory Harris, alongside Executive Director Joseph Grabiec represented the seller and procured the buyer.
Primed for finance and investment in Los Angeles
Last year, Prime landed a $947 million Freddie Mac refinancing loan—at the time, the largest single-asset financing since 2019 and the fifth-largest single-asset multifamily loan in U.S. history—for Park La Brea, a 4,249-unit rent-controlled community in Los Angeles. Newmark secured the financing.
In 2021, the company acquired two adjacent assets in Hermosa Beach, Calif., roughly 21 miles southwest of downtown Los Angeles. Equity Residential sold the 454-unit portfolio for $275 million, with the same IPA team involved in AVA’s sale arranging the deal.
Greater Los Angeles investments slow down
Year-to-date through May, investors traded north of 18 assets with 50 or more units in Greater Los Angeles, Yardi Matrix data shows. The investments totaled more than $884 million, encompassing some 2,700 units.
This year’s recorded figures trail slightly behind last year’s numbers, when 30 properties comprising more than 3,060 units traded during the same period. The investment volume was about $935 million, just 5.4 percent higher than 2024’s total property sales year-to-date through May.
