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San Francisco-based Iconiq Capital is looking to sell two apartment towers totaling 575 units in Downtown Los Angeles originally built by Holland Partner Group in 2019, The Real Deal reports.
A price for the properties wasn't listed in materials reviewed by TRD, but they referenced a “significant discount to replacement cost” for the buildings. Marketing materials estimated replacement cost at less than $1M per unit.
Both buildings, the 300-unit 732 Spring St. and the 275-unit 755 Spring St., are managed by Sentral, a Denver-based hospitality-focused luxury apartment manager.
Sentral received $500M in initial investment from Iconiq, TRD previously reported. Across its portfolio, 85% of Sentral’s units are unfurnished long-term rentals, while the remaining 15% are furnished for short-term rental, the company told TRD.
Iconiq-linked entities bought the towers from Holland Partner Group in 2019 for a little more than $403M, according to public records. The price works out to roughly $700K per unit. Iconiq used a $268M loan from the Santa Monica firm PCCP to buy the buildings, according to TRD.
A JLL team led by Blake Rogers is marketing the properties for sale, TRD reported.
Apartment occupancy in Downtown LA was 90.1% at the end of 2023, according to the most recent report by business owner group DTLA Alliance. The average effective rent per unit was just over $2,700.
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