TODAY’S DEALS: M West Adds 248 Units to LA Portfolio
M West Holdings acquires an apartment in Torrance, Calif.; Besen & Associates brokers the sale of a Section 8 community in the Bronx; and a three-property Santa Monica apartment portfolio trades for $28.5 million.
Torrance, Calif.—Private real estate investor M West Holdings has added 248 units to its Los Angeles portfolio with the acquisition of Milano Apartments. The luxury community is located in the city of Torrance in greater Los Angeles. The 1964-built asset was renovated in 2007-2009.
All units were fixed-up during that time, and the amenity package includes a fitness center, two tennis and basketball courts, secured covered parking, a clubhouse, Internet café, business center, barbecue area, an outdoor sundeck, two swimming pools, and a spa.
“We are pleased to add such a tremendous core asset to our portfolio,” says Karl Slovin, president of M West Holdings. “We believe in the strong demographic trend, lack of buildable sites, and fantastic life-style choices available to our residents in Torrance.”
M West plans to bring further improvements to the community by enhancing common areas and general aesthetics. Architectural plans will be developed for new landscaping, fire pits, outdoor seating areas and cabanas.
“The acquisition of the Milano represents M West’s ongoing commitment to expanding our core portfolio with strategically located well-designed and highly functional multifamily investments that cater to the needs of the local tenant base,” adds Andrew Paulson, senior asset manager at M West Holding. “Because of the submarket’s increasing demand for high-quality, amenity rich assets, we anticipate that these assets will generate favorable risk-adjusted returns for our firm.”
The acquisition comes on the heels of M West’s acquisition of a historic 44-unit property in the Los Angeles neighborhood of Echo Park known as the Grafton Lofts.
Besen & Associates sells affordable Bronx asset for $24M
Bronx, N.Y.—Besen & Associates has sold The Albert Goodman Plaza Apartments, a 250-unit affordable housing property located in the Morrisania section of the Bronx. The portfolio includes four elevator apartment buildings containing 250 apartments and two commercial units. It was constructed in 1982 and has approximately 292,925 square feet in total.
The buildings are operated under a Project Based Section 8 HUD contract. The complex was sold to Preservation Development Partners for $23.8 million. The sale price equates to a 7.4 gross rent multiplier (GRM), $94,450 price per unit, $81 per square foot, and a 6.5 percent capitalization rate. The transaction was completed by the team of Amit Doshi, Lynda Blumberg and Shallini Mehra of Besen & Associates.
Under the Project Based Section 8 contract, the apartments will remain affordable for another 20 years. The new landlords plan to invest approximately $8.8 million in capital improvements which will significantly improve the quality of life for the Goodman Plaza residents.
Three-property apartment portfolio trades for $432,000 per unit
Santa Monica, Calif.—Marcus & Millichap has arranged the sale of a 66-unit, three-property multifamily portfolio in Santa Monica. The properties are 1033 3rd St., 811 6th St. and 1137 11th St. The total sales price for all three properties is $28.5 million which equates to $432,000 per unit.
Michael Hanassab and Elliot Hassan, associates in the firm’s Los Angeles office, represented the buyer, a private investor.
“All three buildings have been renovated and were in turn-key condition at the time of the sale,” says Hanassab. “The properties are all north of Wilshire Boulevard in Santa Monica’s most prime multifamily submarket.”
The property at 1033 3rd St. contains 32 units and was built in 1970. The building at 811 6th St. features 23 units and was constructed in 1972.