NORTH HOLLYWOOD, CA—Vista Investment Group has acquired the NOHO Lofts from CityView for $18.7 million in the upleg of a 1031 transaction. The 68-unit apartment complex is the only adaptive reuse property in the area with both multifamily and office space. The sale included a fully entitled parcel of land adjacent to the complex.
The listing received strong interest from potential investors and multiple offers, largely due to the presence of both commercial and residential space. Several of the investors sought to reposition the property into condominiums and develop the adjacent parcel.
Vista, however, won the bidding frenzy after offering to assume the property’s existing debt and put 38% down. In the end, it purchased the property with a 5.5% cap rate and a 3.7% fixed interest rate. The investment platform plans to continue to lease the property rather than convert the units into condominiums. As for the entitled parcel, Vista has expressed interest in developing 38 additional units and 80 parking spaces.
Located at 5355 Cartwright Ave. in the heart of the North Hollywood arts district, the property is near many shops, restaurants, art galleries and the theater district. In addition to the walkability of the neighborhood, the property is also located close to a Metro Expo subway station. It is 96.8% leased, which is perfectly in tune with the area’s 3% to 4% vacancy rate. The low vacancy rate is attracting many investors to the market. Earlier this year, GlobeSt.com reported exclusively that San Diego-based MG Properties Group purchased the Marquee Apartment Homes from Marquee Apartments LLC for $27.5 million.
Colliers International EVP Kitty Wallace represented both the buyer and the seller in the transaction. She was not available to comment on this transaction.