LOS ANGELES-After selling a 265-unit, six asset, $29M portfolio in the San Fernando Valley in 2012, Madison Partners has arranged the sale of two separate, off-market Valley apartment buildings totaling over $12 million. 

Both properties traded at cap rates of approximately 4.7%. The properties had been recently remodeled, and both assets are exempt from Los Angeles rent control regulations.  Darin Beebower, senior partner with Madison Partners, along with Bryan Schellinger, arranged the sale of both properties.

In the first transaction a local investor acquired 11117 Hartsook Street, a 24-unit apartment building located in the heart of the NoHo Arts District for $4,525,000.  The sale included the buyer paying a significant yield maintenance penalty on an unfavorable loan.

The property features a desirable unit mix of one- and two-bedroom apartments with central AC and an elegant courtyard.

In the second transaction another private investor acquired 11505 Riverside Drive in Valley Village.  The 36-unit building offers a superior unit mix with 8 one-bedroom apartment units and 28 two-bedroom apartment units and is well located along the 101 corridor.

The property had recently undergone a renovation of the lobby and common areas and modernization of half of the unit interiors, providing the new owner with significant upside potential as they continue the renovation plan. 

Recognizing  the opportunity to add a sizeable asset located in close proximity to their existing portfolio, the buyer moved quickly to remove contingencies and assume an existing loan with Chase.  The asset traded for $7,825,000 ($217K/unit and $243/SF).

With more than 16 years in business, Los Angeles-based Madison Partners is a leading privately held commercial real estate brokerage firm.