SoCal Property Commands $95M
An entity affiliated with Afton Properties acquired the community.
An entity associated with Afton Properties has purchased The Landing at Arroyo, a 212-unit asset in Simi Valley, Calif., according to Ventura County public records. USA Properties Fund sold the asset for $95 million. A partnership of Gables Residential, Century Housing, USA Properties Fund and East West Bank developed the community.
Institutional Property Advisors, a division of Marcus & Millichap, spearheaded the negotiations on behalf of the seller and procured the buyer.
In March 2021, the partnership began development on two adjacent Simi Valley properties, investing $114 million. The Landing at Arroyo was one of the two, the other being Vintage at Sycamore—a 99-unit affordable senior community.
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The site upon which the two communities debuted served as the headquarters of Rancho Simi Recreation and Park District, a Special District formed in 1961 to provide parks and recreation activities to Simi Valley.
Consisting of seven buildings, The Landing at Arroyo features one- to three-bedroom floorplans ranging between 702 and 1,192 square feet. Units feature quartz countertops, along with designer plumbing and lighting fixtures. Community amenities include a swimming pool, spa, gym, as well as a coworking space.
Located at 1692 Sycamore Drive, the property is roughly 40 miles northwest of downtown Los Angeles. Several parks and a nearly 220,000-square-foot retail center are within 2 miles of the community. Employers such as Adventist Health Simi Valley and Kaiser Permanente operate within about 3 miles.
IPA Executive Managing Directors Kevin Green and Gregory Harris, together with Executive Director Joseph Grabiec represented the seller and procured the buyer.
Sales prices rise in Los Angeles
Green underlined, in prepared remarks, Simi Valley’s flat multifamily development pipeline—only four multifamily properties bearing 50 or more units came online in the city during the past 25 years. Moreover, just one market-rate community totaling 280 units is slated to debut in the next five years, he added.
With a scarcity of available assets, the multifamily transaction activity comprised six properties with 50 or more units in Simi Valley since 2019, according to Yardi Matrix data. For the six sales, the average price per unit clocked in at north of $327,200, below The Landing at Arroyo’s $448,113 per unit.
The asset’s per-unit price also outshined metro Los Angeles’ average cost per unit which landed at more than $366,600 across 28 traded assets year-to-date through August, the data provider shows. Although fewer assets traded during 2024’s first eight months compared to last year’s figure of 35 during the same interval, this year’s average price per unit was 5.7 percent higher than at this point in 2023.
