What a View: Concord Capital Expands in LA With $52M Acquisition
The property last traded in 2018.
Concord Capital Partners has acquired The View, a 13-story, 168-unit Class A multifamily community in the Koreatown neighborhood of Los Angeles. Concord purchased the asset for $52 million or $310,000 per unit with a 6.5 percent cap rate. JLL represented the seller, which was MWest Holdings, according to Yardi Matrix data, and secured the financing for the transaction.
Originally built in 2013, the property previously traded for $73.3 million in 2018. MWest purchased the community from CIM Group, the same source shows. The high-rise community features apartment floorplans ranging from studios to two-bedroom units, with a majority being one-bedroom. Community amenities include a fitness center, community room and swimming pool.
The Koreatown neighborhood continues to lead in absorption across Los Angeles over the last five years, Jonathan Fhima, Concord’s chief investment officer and managing principal, shared in prepared remarks on the acquisition. Yardi Matrix shows that the View is 95.2 percent occupied and the average rent is $2,670; the asset’s performance mirrors national multifamily market trends.
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According to the latest Yardi Matrix report on Los Angeles from June, the metro is seeing some balancing and recovering rents as the average asking rent is $2,652, on track with the nation. By the end of the year, the metro is expecting to see an additional 11,000 units to come along lining up with the yearly average since 2017.
Located at 3460 W. 7th Street, the walkable, transit-oriented development is just over five miles away from Dodger Stadium and just under 20 Miles from the Los Angeles International Airport. Within walking distance there are multiple dining and retail options as well as multiple public and charter schools.
Acquisition activity in LA
This acquisition comes as Concord continues to expand its portfolio in the Los Angeles area. Earlier this year, the Beverly Hills-based investment firm expanded in the area with a five-property portfolio acquisition totaling 537 units for $79 million. The acquisition included The Fontenoy, The Sir Francis Drake, The Piccadilly and Park Wilshire, located in Hollywood and Koreatown. Each building was built before 1930 and is considered architecturally significant.
The Park Wilshire was originally built as a luxury hotel with marble floors, crown moldings and arched floor-to-ceiling windows. Previously used as a speakeasy, the property was renovated with modern community amenities and holds Mill Act designation.
Nearby in downtown Los Angeles, the Housing Authority of the City of Los Angeles acquired Emerald Apartments in the South Park neighborhood. This acquisition will use HUD’s Restore-Rebuilt Program to preserve affordability for households making at or below 30 to 50 percent of the Area Median Income.
