LOS ANGELES—Westlake Village may be one of the hottest submarkets in Los Angeles, or at least its fundamentals pose great opportunities for investors. The market has soaring demand, nearly no construction, plenty of employers and it has seen steady rental rate increases for five years; plus, the submarket's premium rents lead Los Angeles as a whole.

Illustrating the investor demand in the market, IMT Westlake Village, a 253-unit multifamily property in the market, has traded hands for $88.3 million between IMT Capital and a 1031 exchange buyer. “The city's business friendly environment and its proximity to major employment along the 101 Corridor will continue to attract growth and economic prosperity in the coming years,” Kevin Green, a senior director at Institutional Property Advisors, tells GlobeSt.com. “Given the strong submarket fundamentals, the buyer was presented with the opportunity to complete a strategic renovation in a market where there is a significant affordability gap to home ownership and a scarcity of new supply.”

While the affordability gap is generating demand, the dearth of product is fueling major rent growth, according to Green, who represented the buyer and seller in the transaction along with IPA executive director Greg Harris and senior director Joseph Grabiec. “Rising construction costs require developers to charge higher rents to yield suitable returns, effectively insulating the subject property from future competition,” adds Green. “This is a rare and sizeable asset in Westlake Village/Thousand Oaks, which suffers from severe lack of recently built class-A institutional product.”

As a result of these market conditions, this deal received tremendous interest. The sales team gave 35 property tours and received 17 offers for the asset. “This was a very competitive and aggressive process, and was compounded by the scarcity of product both in the broader market and in a prime Ventura County location,” says Green.

While this was a great investor opportunity, the seller also saw the market conditions as a great opportunity. IMT Capital decided to sell both because it had completed its business plan as well as because of the aggressive market timing, according to Green.

The property was built in 1971 and sits on 14 acres. It features 13 buildings and 13-building, 261,670 rentable square feet with one-, two- and three-bedroom apartments as well as three-bedroom townhomes. The buyer secured a $55.4 million lease to purchase the asset.

Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.

LOS ANGELES—Westlake Village may be one of the hottest submarkets in Los Angeles, or at least its fundamentals pose great opportunities for investors. The market has soaring demand, nearly no construction, plenty of employers and it has seen steady rental rate increases for five years; plus, the submarket's premium rents lead Los Angeles as a whole.

Illustrating the investor demand in the market, IMT Westlake Village, a 253-unit multifamily property in the market, has traded hands for $88.3 million between IMT Capital and a 1031 exchange buyer. “The city's business friendly environment and its proximity to major employment along the 101 Corridor will continue to attract growth and economic prosperity in the coming years,” Kevin Green, a senior director at Institutional Property Advisors, tells GlobeSt.com. “Given the strong submarket fundamentals, the buyer was presented with the opportunity to complete a strategic renovation in a market where there is a significant affordability gap to home ownership and a scarcity of new supply.”

While the affordability gap is generating demand, the dearth of product is fueling major rent growth, according to Green, who represented the buyer and seller in the transaction along with IPA executive director Greg Harris and senior director Joseph Grabiec. “Rising construction costs require developers to charge higher rents to yield suitable returns, effectively insulating the subject property from future competition,” adds Green. “This is a rare and sizeable asset in Westlake Village/Thousand Oaks, which suffers from severe lack of recently built class-A institutional product.”

As a result of these market conditions, this deal received tremendous interest. The sales team gave 35 property tours and received 17 offers for the asset. “This was a very competitive and aggressive process, and was compounded by the scarcity of product both in the broader market and in a prime Ventura County location,” says Green.

While this was a great investor opportunity, the seller also saw the market conditions as a great opportunity. IMT Capital decided to sell both because it had completed its business plan as well as because of the aggressive market timing, according to Green.

The property was built in 1971 and sits on 14 acres. It features 13 buildings and 13-building, 261,670 rentable square feet with one-, two- and three-bedroom apartments as well as three-bedroom townhomes. The buyer secured a $55.4 million lease to purchase the asset.

Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.