Two Investors Acquire 66 Units for $13M

[IMGCAP(2)]The buyer in the Malibu Creek was 15600 Vanowen Ltd. of Studio City, which acquired the property from SP Calabasas, an affiliate of Seattle-based Security Properties, which had substantially renovated the complex over the last several years. The new owner, who assumed existing debt at a 5.66% interest rate, plans only minor cosmetic upgrades to the 90%-occupied, 20 year-old property.

Norris and Zander note that the buyer owns and manages several other newer apartment buildings in Los Angeles and believes this sale represents the continued demand by the private sector for well-located institutional-quality assets. Norris says that Malibu Creek, one of the premier apartment properties in Calabasas, generated numerousoffers from both local and regional private investors, many of whom were attracted to the location, condition of the property and positive growth assumptions for the submarket.

Malibu Creek I and II consist of two distinct properties within seven buildings located at both corners of Las Virgenes Road and Parkmor Road, close to the 101 Freeway and near many of the largest employers,entertainment options, shopping districts and outdoor activities, the Hendricks & Partner brokers note. Units range from studios to two-bedroom apartments measuring from 700 to 1,100 square feet,with in-place rents ranging from $1,200 to nearly $2,100 per unit. Common area amenities include a renovated swimming pooland spa, plus more than 1.6 acres of landscaped grounds.

In the Sherman Oaks transaction, Norris and Zander report that C&S Shoreham of Los Angeles bought the Copperfield complex from Studio City-based 15600 Vanowen Partners in the first trade in 2009 in this immediate submarket. The 24-year-old complex was 95% occupied and in excellent condition, according to Norris and Zander. The buyer, who was represented by Jeff Louks of Marcus & Millichap, paid all cash for the property and owns several other trophy apartment buildings inthe vicinity.

Norris and Zander say that the sale "represents another example of the continued demand by the private sector for well-located, well-managed assets. Norris cites the property's "wide variety of unit types, excellent amenities and terrific location."

The Copperfield complex generated numerous offers, mostly from private investors, thanks to its quality and its location "in one the most sought-after Los Angeles submarkets," Zander says. The complex, at the corner of Dickens Street and Noble Avenue, features townhomes and lofts, many with private sundecks, measuring from 400 to 1,300 square feet. In-place rents range from $900 to $2,500 per unit.