CULVER CITY, CA—A local, family investor has purchased the Keswick Court Apartments complex from MWest in the upleg of a 1031 exchange. The multifamily property has 60 units and is set in a high-end neighborhood near many shops and restaurants.
Located at 3902 Lenawee Ave., the property was built in 1957. Between 2011 and 2012, the property received a significant exterior and mechanical renovation, according to Greg Harris, the executive director at Institutional Property Advisors, who advised the seller along with directors Kevin Green and Joseph Grabiec. Matt Ziegler, VP of investments at Marcus & Millichap, advised the buyer.
“Keswick Court Apartments is a sizeable non-rent-controlled asset in a market where there is demand for luxury apartment homes, a significant affordability gap to home ownership, and a scarcity of new supply,” says Harris. He adds that in addition to the previously mentioned renovations, “additional revenue-generating improvement opportunities exist, allowing the new owner to modernize while maintaining insulation from the rents of more recently constructed apartment homes.” He was not available for further comment prior to the publication of this article.
Additionally, 35 of the interior units have been renovated and feature high-end, quality fixtures with new appliances, granite countertops, vinyl plank-wood flooring and large closets. The landscaped property has a swimming pool, barbeque area and onsite parking.
As Harris notes, demand in Culver City is high for luxury apartments, probably due to the high concentration of creative companies and entertainment companies moving in. In a recent story, GlobeSt.com reported that Hackman Capital Partners purchased the historic Culver Studios for $85 million. The studio has 13 sound stages and creative office space.