A year after it last traded hands, a 1,000-unit portfolio of apartments in Downtown Los Angeles has a new owner.

After a $315M recapitalization, Miami-based Fifteen Group and Laguna Point Properties are the owners of the five buildings that LPP bought last year, according to CoStar Group.

LPP paid $402M for the five buildings in April 2022. The lower recapitalization figure is partly a reflection of rising interest rates on commercial property values, CoStar said.

Representatives for Fifteen Group didn't respond to a request for comment from Bisnow. A representative for Laguna Point Properties declined to comment.

Not long after LPP's purchase, it sued the seller, LLCs connected to Downtown property owner Barry Shy, alleging breach of contract. LPP said issues such as ongoing tenant lawsuits, unpaid bills and costly, necessary repairs at the properties should have been disclosed but weren't.

Occupancy in the buildings was 87% in February, down from 97% when LPP secured its loan, The Real Deal reported.

Last month, LPP missed payments on a $329M loan it used to acquire the portfolio, which consists of SB Manhattan at 215 West Sixth St., SB Lofts at 548 South Spring St., SB Tower at 600 South Spring St., SB Spring at 650 South Spring St. and SB Main at 111 West Seventh St.

Though based in Miami, Fifteen Group has other Downtown-adjacent projects in various stages of completion. The city selected it, along with Lincoln Property Co., in 2017 to redevelop the decrepit Lincoln Heights Jail. That plan hasn't made visible progress. Fifteen Group is also planning to redevelop the Santa Fe Arts Colony, an adaptive reuse warehouse-turned-lofts complex, after residents made several attempts to preserve it.

Across the country, multifamily assets have lost their shine among investors after serving as a darling property type during much of the pandemic. Investors purchased $14B worth of apartment buildings in the first quarter, a 74% decrease from Q1 2022.

CORRECTION, APRIL 5, 4:49 P.M. PT: A previous version of this story incorrectly stated the nature of the transaction as a sale. The story has been updated.