Zander tells GlobeSt.com that the buyer, the Silvestre Trust of Calabasas, CA, paid $101,500 per unit. He says the price "sets a new high for mid-San Fernando Valley buildings of this unit mix." Zander represented buyer and seller, Redevelopment Associates LLC of San Francisco.

The Winnetka property is a two-story, single-building, wood frame and stucco complex that is built atop its own parking. It was 100% occupied at sale time.

The building contains 28 one-bedroom, one-bath units; four two-bedroom, one-bath units; and four two-bedroom, two-bath apartments. The one-bedroom units measure 750 sf and rent for $850 to $925 per month, while the two-bedroom, one-bath units measure 875 sf and go for $1,000 to $1,150. The two-bedroom, two-bath models measure 950 sf and rent for $920 to $1,250.

The Winnetka was built in 1983 and renovated in 2002. The seller had owned it for 13 months, acquiring it in a deal in which Zander was the listing agent for a local firm that had developed and owned the building for many years. During the 13 months that Redevelopment Associates held the property, Zander says, it spent more than $5,500 per unit in upgrading the common areas and had completed 75% of the units. The buyer closed the deal with proceeds from a 1031 Exchange plus obtained 70% financing in a five-year loan with an interest rate of about 4.4%.

Zander says the transaction meets the investment goals of both the seller and the buyer because it represented a value-added play for the seller while the buyer was looking for a stabilized property as a long-term hold.