CANOGA PARK, CA-The Irvine office of San Diego-based Davlyn Investments has closed on the $16.5 million acquisition of a 123-unit apartment complex and now owns 750 units within a three-mile radius of the property. Davlyn plans an extensive renovation of the complex, now known as Casa Prada Apartments but soon to be renamed the Cornerstone.

Davlyn's new asset is at 8609 De Soto Ave. and is its third acquisition in the first three months of this year as well as its 12th apartment acquisition in Los Angeles County. Davlyn bought the property from Klingbeil Capital Management of San Francisco, with Robin Ossenbeck of the Encino office of Hendricks & Partners representing both parties and lending provided by Eric Flyckt of CapMark Finance Inc.

Davlyn's director of acquisitions, Aaron Pacillio, described the appeal of the asset, saying that the deal "illustrates how aggressive Davlyn can be for the right investment." With its more than 750 units within three miles and the majority of those units under rent control, "We were able to aggressively underwrite the true rental rates and turnover available in this region of the San Fernando Valley," he says.

As a result, Pacillio adds, "We were able to provide the seller an aggressive price, while still receiving an excellent investment in return." He points out that the Cornerstone complex enjoys high historical occupancy, rent growth, barriers to entry and "some of the best drive-by exposure available in the market."

Davlyn, which is an owner/operator of condominium conversion projects and office buildings in addition to its apartment investments, now has apartment holdings of approximately 3,000 units. The company is headed by Jon Williams and Paul Kerr.