TODAY’S DEALS: Cushman & Wakefield Negotiates $100M Sale
Cushman & Wakefield negotiates the sale of a luxury L.A. apartment for $100 million; Tikijian sells a 226-unit property in Indiana; and Grand Heritage Resort in Colorado closes 31 condo sales.
Los Angeles—Cushman & Wakefield has successfully negotiated the sale of the 322-unit Pegasus apartment building in downtown Los Angeles for $100 million from Buchanan Street Partners and The Kor Group to Equity Residential. The deal is one of the largest multifamily sales in the Los Angeles Central Business District’s history.
According to Cushman & Wakefield, the transaction is yet another sign that institutional and publically traded REITs are in search of core infill, coastal assets.
“For Equity Residential to deploy such significant capital is a tremendous endorsement of Downtown Los Angeles,” says Marc Renard, executive managing director of C&W Capital Markets. “The price reflects the competitive environment that exists for high-quality, multifamily properties in well-located, urban infill areas.”
Pegasus is considered an ‘ultra luxury’ apartment building and has two restaurants in its 12,500 square feet of ground floor retail space. The Kor Group bought the 13-story asset, formerly the headquarters of General Petroleum, in 2001, and had converted the building to luxury condominiums by 2003. Amenities include a rooftop pool and sundeck, fitness center and business center.
“With the completion of the strategic upgrades and repositioning of Pegasus, we successfully executed our value enhancement investment strategy and are very pleased with the outcome,” says Kimberly Stevenson, vice president of Buchanan Street Partners.
Tikijian sells 226-unit property in Indiana
Ft. Wayne, Ind.—Tikijian Associates has sold Regency Park, a 226-unit apartment community in Ft. Wayne, Ind. The firm represented the seller, Miami-based LNR Partners LLC, a special servicer acting on behalf of the lender following a mortgage foreclosure. Indiana-based Buckingham Companies had been managing the property since 2009, when the group was appointed receiver of the property. The property was marketed at $5.9 million.
The buyer, White Oak Partners, is a diversified private investment firm based in Ohio. The firm has acquired, developed or managed more than 200,000 multifamily units throughout the United States. Regency Park represents their first purchase in Indiana. White Oak plans to complete a moderate exterior rehab and a comprehensive interior update o the property. Planned improvements include a pool renovation, new landscaping and improvement to parking areas. The asset will also receive unit updates and a refurbished leasing center.
Telluride resort closes sale of 31 condos
Telluride, Colo.—The Peaks Resort & Spa at Grand Heritage Resort has closed 31 condo sales in Telluride, Colo. The new local ownership group, Peaks Capital Partners, recently put in substantial upgrades to the resort. Occupancy and sales spiked this past ski season. An affordable price point helped drive sales. Studios and suites start at under $150,000.
“We have got the right product at the right price at the right time,” says Nels Cary, president of The Peaks Real Estate Sotheby’s International Realty, the resort’s brokerage firm.
Recent major renovations include upgrades to all units and two new decks off the great room. The resort also offers ski-in, ski-out access and a helipad for backcountry heliskiing and snowboarding on some of the most technical terrain in the country. Occupancy at The Peaks Resort and Spa was up over 20 percent this past season from years prior.
