LA's Top 5 Summer Apartment Sales
Rising apartment rents and high costs of land continue to push multifamily property values skyward throughout the LA region. With the help of JLL VP Javier Rivera, Bisnow has compiled a list of the top five multifamily deals that went down over the summer months.
When he isn’t fishing, Javier is tracking the region’s multifamily sales market, which he says isn’t very dynamic right now. “There hasn’t been much activity because there’s not a lot currently on the market. Institutional investors are holding onto assets hoping to reap the benefits of a rising market to push rental rates and bolster income,” he tells us.
Though not the top deals, he says that two properties, the 58-unit Ashton Westwood, which sold for $63.5M, and the 68-unit Villa Malibu, which went for $62M, are notable for the price paid per door. “These are boutique, very high-end assets, built to condo-specs in premium locations and sold for about $1M per unit, some of the highest pricing ever seen in Los Angeles," he says.
Over the next year, Javier predicts continued increasing rents and tightening occupancy with more condo development coming shortly as rising rents start to equal entry-level condo mortgage payments.
1. 12th & Olive
At the top of our list is 12th & Olive, a seven-story residential mixed-use complex in the heart of Downtown LA, which was sold in May to UDR for $116M by the Wolff Co. Located at 1243 S Olive St, this luxury complex includes 294 apartment units, 7k SF of amenity spaces and 17k SF of retail on the ground level.
2. The Desmond on Wilshire
Next on our list is The Desmond on Wilshire, which was sold in August for $108M to Brookfield by Associated Estates. Located at 5500 Wilshire Blvd, this newly built luxury complex on the Miracle Mile near museum row has rents starting at $3,100 per month.
3. Serenade at RiverPark
Third up on the top sales list is Serenade at RiverPark, a 400-unit apartment property at 700 Forest Park Blvd in Oxnard, which was sold in May for $104.8M to locally based asset manager JRK Property Holdings by a JV of Beverly Hills-based Kennedy Wilson, Chicago's Capri Capital Partners and Boston-based Urban Capital Partners. Built in 2008, the 14-building complex is situated along the 101 Freeway, halfway between downtown Oxnard and Ventura.
Next on our list is Downtown LA's Avant, a luxury seven-story, 247-unit project built in 2014 by Chicago developer Fifield Cos. The 1420 S Figueroa St complex was solid in June for $99M to Essex Property Trust. Located in the popular South Park district, the building is within an easy walk of Staples Center and LA Live, and features a stunning rooftop amenity with amazing views of the downtown skyline and city lights.
5. Promenade Terrace
And lastly, Promenade Terrace, a 330-unit apartment complex in Corona was sold in September for $78.4M to Salt Lake City's Bridge Investment Group by Equity Residential. Built in 1990, the complex, at 451 Wellesley Dr, consists of 40 two-story buildings.