PANORAMA CITY, CA—Private Los Angeles investor TobiasPartners LP has sold an apartment complexto Los Angeles investor PJCF-T2 LLC for $22million. The 201-unit property is currently generating below marketrents, providing an opportunity for the buyer to gain additionalincome as the leases roll.

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“With a per-unit price of just over $109,000, this investmentpresented an opportunity for the buyer to increase returns bygradually bringing rents up to market rates as leases expire,”Hamid Soroudi, Charles Dunnsenior managing director, tells GlobeSt.com. Soroudi representedthe seller in the transaction. “As the multifamilymarket in Panorama City, CA, and other key Los Angelessubmarkets continues to tighten, value-add opportunities such asthis one, are becoming harder to find,” he continues.

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The multifamily market in the city, as Soroudi notes, isextremely tight with vacancy rates under 3% and no newdevelopment in the pipeline. This particular property wasattractive both because of the market and because many of the unitshave been recently renovated by the seller, which positions it togenerate higher rents. The buyer purchased the property at a 5.3%cap rate.

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Located at 9010 Tobias Ave., the property has a mix of studios,one- and two-bedroom units. Onsite amenities include a swimmingpool, fitness center, subterranean parking and controlledaccess.

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At the recent Marcus & Millichap MultifamilyForum, lenders discussed the trend toward investorspurchasing properties in secondary markets because yields werebeing crushed in the class-A space. Several of thepanelists noted that they preferred redevelopment purchases andlooked at properties that were positioned for rental growth, likethis property.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.