TODAY’S DEALS: Forest City Sells Interest in L.A. Apartment Property
Forest City Enterprises Inc. sells 50 percent interest in 264-unit apartment property; Charles Dunn Company closes the sale of a 26-unit apartment complex for $2.8 million; and Hendricks & Partners brokers the sale of an affordable seniors apartment property.
Los Angeles–A subsidiary of Forest City Enterprises Inc. has closed the sale of its 50 percent interest in Met Lofts, a 264-unit apartment property located a block away from the Staples Center in Los Angeles. Forest City and CalPERS were equal partners, and the sale was in accordance to an existing buy/sell agreement between the parties.
The price reflects a total property value of $73.6 million and a cap rate of 4.5 percent based on 2010 net operating income for the property. Forest City expects the sale to generate proceeds of approximately $13.2 million, including the return of subordinated capital in the partnership. The eight-story boutique loft apartment was developed by Forest City in 2005.
“Met Lofts is a great property in a dynamic part of downtown Los Angeles,” says Kevin Ratner, president of Forest City West. “The sale reflects the value we and our partner have created, as well as Forest City’s strategy of selectively harvesting that value from within our portfolio.”
Charles Dunn Company closes $2.8M multifamily sale
Bellflower, Calif.–The Charles Dunn Company has closed the sale of a 26-unit apartment complex at 9770 Beach St. in Bellflower for approximately $2.8 million.
Bryan Glenn of Charles Dunn Company’s West Los Angeles office represented the seller, a private trust. RE/MAX Commercial & Investment Realty represented the buyer, a private investor. The property, known as the Beach Apartments, was constructed in 1971 and is 96 percent leased.
“The buyer chose the property because of its prime location and well-maintained grounds with upside potential,” says Glenn. “There were multiple offers on this property due to the lack of inventory in this area and ultimately, the buyer was drawn in by the high quality of the property and its attractive price per units.”
Hendricks & Partners represents seller in sale of affordable seniors apartments
Portland, Ore.–Hendricks & Partners’ National Affordable Housing Advisory Group arranged the sale of Uptown Tower, located at 712 SW Saint Clair Street in Portland, Ore. The 72-unit apartment community was sold for $9,500,000.
Located in Portland’s downtown core, Uptown Tower features all one-bedroom, one-bath units designed as affordable housing for the elderly. Built in 1983, the property has eight levels of apartments, along with ground-floor retail space. The transaction was designed to preserve the Section 8 Housing Assistance Payments contract and was completed with the use of tax-exempt bonds and Low Income Housing Tax Credits.
The seller was Uptown Associates Ltd., of Lahaina, Hawaii. The buyer was Uptown Tower Apts L.P., of Portland, Ore. The transaction was negotiated by Robert DiPietrae of Hendricks & Partners on behalf of the seller.
Di Pietrae, an associate partner with Hendricks & Partners’ National Affordable Housing Advisory Group, represents owners in the disposition of low-income housing apartment communities.