TODAY’S DEALS: BRE Acquires 220-Unit Apartment Community for $56.5M
BRE Properties Inc. buys 220-unit community for $56.6 million; Tikijian closes the sale of 384-unit Knobs Pointe; and Charles Dunn completes $1.2M sale in Los Angeles.
Valencia, Calif.—BRE Properties Inc. has acquired The Vistas of West Hills, a 220-unit property in Valencia Calif. for approximately $56.5 million. The initial year-one stabilized capitalization rate on the investment is 5.1 percent.
“The Vistas of West Hills, built on the last entitled apartment parcel in the Valencia master plan, is an important acquisition for BRE because it meets our strategy of concentrating capital to optimize operating efficiencies,” says Stephen C. Dominiak, BRE’s executive vice president, chief investment officer. “The combination of supply constraints, potential savings in operating costs, a diverse economy, and easy access to local employment, shopping, entertainment and major freeways make this property a valuable addition to our southern California portfolio.”
Built in 2009, The Vistas are comprised of 10 three-story, wood-framed buildings with tuck-under parking. The 9-acre property features one-, two- and three-bedroom units. Amenities include a fitness center, pool and spa, bike and walking trails, barbecue areas, and an outdoor fireplace.
Tikijian sells a 384-unit community in Indiana
New Albany, Ind.–Tikijian has closed the sale of Knobs Pointe, a 384-unit apartment community located in New Albany, Ind. The deal also included a 23,000-square-foot shopping and office complex next to the apartments.
The seller was an affiliate of New York-based Sovereign Bank, which acquired the title as a result of a mortgage foreclosure. The property was marketed un-priced. Bluestone Property Management, an Ohio-based owner/manager of over 4,000 apartment units, bought the property.
New Albany is located in southern Indiana, just across the Ohio River from Louisville, Ky. The hilltop location has views of both the river and the Louisville skyline.
Charles Dunn closes $1.2M sale of 92%-occupied property in Los Angeles
Los Angeles–Bryan Glenn of Charles Dunn Company’s West Los Angeles office has closed the sale of a 24-unit multifamily property located at 916 S. Lake St. in Los Angeles, Calif. The value of the transaction is $1.2 million.
The 10,712-square-foot apartment complex was purchased and sold by private investors. Glenn represented the seller and Connie Kim of Coldwell Banker Commercial represented the buyer. The building was constructed in 1923 and is currently 92 percent leased.
Glenn states the seller was looking to reduce management responsibilities while the buyer found the low gross rent multiplier and attractive cash flow greatly appealing. The buyer plans to hold the property for future investment.
“This is one of a handful of older properties that has traded in this submarket recently based on an attractive price per unit and strong cash flow,” Glenn says.