WOODLAND HILLS, CA—Developer Wood Partners has sold Alta Warner Center, a 298-unit luxury multifamily property, to an unnamed institutional multifamily investor, GlobeSt.com reports exclusively. The property traded hands for an undisclosed amount; however, industry sources unrelated to the deal estimate that the value is north of $70 million.
According to Wood Partners, the property came online at the perfect time, when demand for luxury rental units in the submarket is at its highest. “Wood Partners has been really successful with their merchant-build strategy, and with bringing on great products with great timing in Southern California Given the job base and the growth of Warner Canter, we feel that this is a win,” Kevin Merchant, director at Moran & Co., tells GlobeSt.com. Mike Murphy, a director at Moran & Co., represented Wood Partners in the transaction, but is currently traveling and unable to comment on the transaction.
The property generated high interest from potential buyers throughout the West Coast. According to both Merchant and Murphy, the property’s close proximity to employment centers and the $350 million Westfield shopping center development currently under construction helped to generate interest. Additionally, the city recently passed the Warner Center 2035 Plan, which requires any new projects to include 15% of open space and commercial components. This could hinder any new multifamily construction in the foreseeable future.
Alta Warner Center was had an occupancy range in the high 80% to low 90% at the time of the sale. Wood Partners purchased the land site in 2011 and began construction in August of 2011. Developers launched leasing efforts for the $75 million development late last year.