LOS ANGELES-Monem Corp., a private investment firm, has acquired two multifamily buildings at 1525 Cassil Place and 4517 Franklin Ave. in Los Angeles for a combined value of $3.5 million, GlobeSt.com reports in this exclusive story. The purchase brings Monem Corp.'s portfolio to more than 60 multifamily properties.

“These were both off-market opportunities and buildings that we felt we could add some value to,” Danny Monempour, Monem Corp.'s president, tells GlobeSt.com. “They were both rent-control properties and had a lot of upside.”

The Cassil Place property has 20 units and 100% occupancy and was purchased for $2.17 million from a private investor. The Franklin Ave. property, which has 10 units with an entitlement for 16 lofts or condos, was purchased for $1.4 million from Franklin Lofts LLC. Both sales closed at a 6% cap rate.

Both acquisitions illustrate Monem Corp.'s interest in expanding their multifamily portfolio in Los Angeles. “We are trying to reach more brokers to show that we are active and trying to look for a lot more properties,” says Monempour. The firm is focusing on low rent and rent-control properties, and despite a recent and minimal rise in interest rates, Monempour believes the fundamentals are still strong for the company to take advantage of multifamily acquisition opportunities.

“Rents are still going up, and I don't see any reason for them to come down,” Monempour explains. “I really see rents continuing to climb. We are still getting pretty good interest rates, and the market is still very, very strong. Even though interest rates have gone up, it hasn't affected the returns that we are trying to generate on these buildings.”

The firm's goal is to add 100 units to its portfolio per year, GlobeSt.com reported in April after Monem Corp. purchased two apartment buildings, totaling 44 units, for $5 million.