GLENDALE, CA-Essex Property Trust of Palo Alto, CA has acquired the 416 Broadway complex, a 115-unit former condominium project that was converted to apartments, for $43 million in a receivership sale. Receiver and principal Taylor B Grant of Newport Beach, CA-based California Real Estate Receiverships reports that the four-level project, at 416 Broadway, was originally financed by Netherlands-based MBO. Built as a condominium in 2009, the project was converted to rentals and currently has a vacancy rate of less than 5%, according to Grant.
“When the market recovers, it may well again be sold as a condominium,” said Grant, who has served as receiver for some $750 million of commercial and residential properties. “The fact that more than 20 offers were made is indicative of the continuing demand for quality projects in under-supplied markets.”
The project, located three blocks from Americana at Brand and Glendale Galleria, includes 9,000 square feet of retail at ground level. Originally developed by East Broadway Ventures of Newport Beach, the property was encumbered by numerous liens and competing claims regarding payment and priority of payment, the receiver said. “The resolution of those disputes cleared the way for sale of the building,” he said.
Sean Deasy, of Holliday Fenoglio Fowler, represented the buyer and the seller.
The purchase of 416 Broadway is the latest in a series of acquisitions and dispositions in Southern California in recent months by Essex, a REIT that is a major developer and owner of 139 multifamily projects with more than 28,000 units, according to its website.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.