Trio of LA Apartment Buildings Worth $520M Go on Market

Three upscale apartment buildings in Downtown Los Angeles with a total of more than 1,000 units and an estimated combined value of $520M, have hit the market, according to a report from Green Street.

The properties, listed by Eastdill Secured, include two assets owned by San Francisco-based MacFarlane Partners, the 347-unit Park Fifth and its neighbor, a building known as Trademark which has 313 apartment units.

Also going on the market is 355-unit LA Plaza, which is owned by the High Street Residential. The building is part of LA Plaza Village, a mixed-use development that the partnership that High Street is building in partnership with Principal Real Estate Investors and the Cesar Chavez Foundation.

All three properties were built in 2019. The Park Fifth and Trademark buildings are located across from Pershing Square in a neighborhood filled with museums, galleries, entertainment venues and restaurants.

The 24-story Park Fifth, located on 427 W. Fifth Street in DTLA, is valued at $200M, or $576K/unit; the seven-story Trademark building, at 437 S. Hill Street, is asking for $160M, or $511K/unit; and the LA Plaza, located at 555 N. Spring Street, is soliciting bids of $160M, or $450K per unit.

According to Green Street, the Park Fifth and Trademark buildings are being pitched as an opportunity to capture post-stabilization rent growth while capitalizing on the market recovery as residents return to urban markets.

The one- to three-bedroom apartments in Park Fifth average 806 SF. The building is 92% occupied, with rents for available one-bedroom units starting at $3,400. Amenities include a pool, a clubhouse with a bar, and a rooftop deck with LA skyline views. Park Fifth also has about 4,800 SF of ground-floor retail space.

Trademark’s one- to three-bedroom units have average footprints of 703 SF, with rents for available one-bedroom units starting at $2,700. The building has 7,700 SF of ground-floor retail space and amenities include a 14,000 SF outdoor courtyard, a pool, a rooftop deck and an indoor/outdoor fitness center.

The last 30 leases for Trademark units were signed at rental rates 14% above in-place rents with minimal conditions, Green Street reported.

Rents for available studio apartments at La Plaza start at $2,100; 20% of the units are designated as affordable housing, reserved for tenants making 60% to 80% of the area’s median income.

LA Plaza Village includes 44K SF of retail space and a pedestrian trail that links the complex to Union Station.