Laguna Point Properties has secured $329 million in acquisition financing to acquire a five-property, 1,036-unit multifamily portfolio in Downtown Los Angeles. MF1 Capital provided the three-year, floating-rate acquisition loan with two 12-month extension options. All of the apartment units in the portfolio have been converted from office properties.

Laguna Point purchased the 184-unit Lofts building, the 214-unit Main property, the 198-unit Manhattan property, the 178-unit Spring property and the 263-unit Tower property. The name of the seller was not disclosed, but all of the assets underwent conversions from office properties into apartment units from 2007 to 2010.

Before the pandemic, the Downtown Los Angeles apartment market was growing rapidly. In 2019, 4,447 new units delivered in the Downtown Los Angeles market, a 35% increase over the previous year and a new record for the submarket, according to a report from the DCBID. With the new deliveries, the apartment vacancy rate increased 2.9%; however, rents remained flat at $3.22 per square foot and effective rents increased 1.4%.