THOUSAND OAKS, CA-A San Mateo-based investment group called APIP Pavilion LLC has acquired the 142-unit Pavilion Apartments from Pavilion Associates of Corona Del Mar for $42.5 million and plans major upgrades to the property, according to Hendricks & Partners. Dean Zander of Hendricks& Partners, who brokered the deal on behalf of both buyer and seller, tells GlobeSt.com that the new owner's plans include improvements to both the living units and the common areas of the complex.
Zander calls the deal "a unique opportunity for the buyer to acquire a large complex in a high-demand market with very limited competition." He notes that the seller had owned the complex for more than 20 years and that the sale price works out to a cap rate of 5.5% on stabilized income.
The property, at 550 N. Laurie Lane, is just west of Moorpark Road and Hillcrest Drive, west of the Janss Marketplace and about a mile west the Oaks shopping mall. It was built in 1967 and consists of 26 two-story buildings situated on nearly nine acres.
Zander points out that the property features oversized units, with apartments ranging from one to three bedrooms in floor plans ranging up to 1,600 sf. Common area amenities at the Pavilion include a two-story clubhouse with a large fitness center, two pools and a spa.
The sale of the Pavilion illustrates that buyers are still pursuing value-added multifamily deals in Southern California. In recent weeks, for example, three apartment properties that Zander sold in Hollywood, Lakewood and Glendale totaling 514 units traded for a combined total of nearly $130 million. In all three of those deals, according to Zander, the properties offered upside to their new owners through upgrade programs that will result in higher rents.
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