Dave Casper and Karoline Sauls of Hendricks & Partners, whobrokered the transaction, report that the building does not fallunder rent control and that it is situated in an up-and-comingresidential neighborhood defined by strong, moderate home pricesand trendy new retail shops. The location is also close to the80-acre Anthony C. Beilenson Park, the largest recreation area ofits kind within the Los Angeles City limits.

The Lakes complex was built in 1988 and features threeelevator-accessed floors in seven floor plans. Its 52 units include28 one-bedroom, one-bath units aparments, 16 two-bedroom, two-bathunits and eight two-bedroom, two-bath units. The property wassubstantially renovated by the seller at the time of closing, withapproximately 65% of its interiors remodeled and all exterior workcompleted.

The buyer plans to finish the interior renovation andinexpensively improve the common areas. Sauls notes that in-placerents for roughly 46% of the units were at least 40% below currentmarket levels at the time of the closing. Casper comments that thedeal "was a perfect fit for ORIX" given the buyer's programrequirement for high-barrier-to-entry markets and propertiesdemonstrating real cap rates of 5.5% or higher at the close. ORIXcaters to tax-sensitive, offshore investors, he notes.