LOS ANGELES-Locally based 4D Investment and Development has closed escrow on a portfolio of notes secured by four apartment buildings totaling 199 units in the Koreatown section of Los Angeles. The transaction was executed through Wells Fargo as special servicer on notes originated by Wachovia Bank, with Brent Sprenkle and Vince Norris of the Los Angeles offices of Hendricks & Partners executing the sale on behalf of Wells Fargo.

Norris and Sprenkle note that the deal garnered 203 executed confidentiality agreements and 29 offers for the portfolio of buildings, which were constructed between 1926 and 1930. The Hendricks brokers point out that, although the buildings are more than 80 years old, they were exempt from local rent control because of significant renovations made to them during the last 20 years.

The portfolio of properties was last sold in 2006 to a Northern California based investment and development group that completed additional renovations. According to Norris, “Even though these were brick buildings, they had major renovations both to the unit interiors as well as building mechanical systems.” Located within a mile of each other the property portfolio was relatively well operated and stabilized at the time of sale, he added.

The outstanding loan balances and other related information were not available for publication. However, according to Sprenkle, buyer David Pourbaba said the assets had been on his radar for some time and he "worked through some very challenging aspects of the deal before he was able to close.” Sprenkle has a long history with the assets too, having listed the properties for sale in 2008, only to have them taken off the market.

The buyer has not disclosed specific plans for the properties, but the Hendricks team says that, with interest rates having risen almost 100 basis points in from mid-October to the end of 2010, "It would appear that this transaction was one of the last deals of 2010 to benefit from the relatively low cost of fixed rate debt."