PASADENA, CA-Chicago-based apartment REIT Equity Residential has acquired the 143-unit Acappella Pasadena apartment complex from a Pennsylvania-based pension fund adviser, according to Dean Zander and Vince Norris of Hendricks & Partners, who were the listing brokers for the property. The sales price was undisclosed; when the complex went on the market last year, the asking price was $36.9 million.

The class A property at 145 Chestnut St. and 160 Corson St. is one of the newest apartment complexes in Pasadena, having been constructed in 2002. Located djacent to the 210 (Foothill) Freeway, Acappella's 142,000 square feet of space comprises four stories of apartments over two levels of parking. Building amenities include a fully furnished clubhouse, business center and fitness center, while units include washer/dryers, central air and other luxury features.

Zander and Norris report that “This sale represents the strong and continued demand for well-located, institutional-quality assets.” The excellent location, age and size of this investment generated considerable interest from both private and institutional investors.

Norris stated, “The existing fully-amortizing fixed-rate FHA debt in place was accretive to the sale. Additionally, Acappella enjoys an outstanding location; the property sits in the heart of the best sub-market in the area. Residents can walk to Old Town, or take the Metro Gold Line to downtown Los Angeles.”

Zander added “In today’s supply-constrained market, the demand for core offerings like Acappella will continue to attract a significant amount of investor interest. With equity outpacing available offerings, the market continues to see significant cap rate compression. It also helps that experienced investors are finally able to underwrite and value significant rent growth projections.”