GLENDALE, CA-IMT Residential of Los Angeles has acquired a 67-unit apartment complex at 1630 Calle Vaquero, called the Hills, from a Dallas-based pension fund adviser for $12.6 million. Hendricks & Partners listing brokers Dean Zander and Shane Shafer report that the sale "represents the strong and continued demand for well-located, value-add assets."
Zander and Shafer say that the location, age and size of the investment "generated considerable interest from both private and institutional investors.” IMT Residential is known for developing, redeveloping, acquiring and managing apartment complexes in high barriers-to-entry markets, they add.
The new owner "recognized a terrific opportunity to improve operations by continuing and completing a renovation program which previously stalled due to market conditions," Zander and Shafer say. They note that the property "enjoys an outstanding location, convenient to the best Glendale has to offer, without the congestion and traffic experienced Downtown.
The buyer closed the purchase on an all-cash basis, just 15 days following approval of the inspection. The buyer plans to place permanent fixed-rate debt upon completing the planned upgrades, according to Zander and Shafer.
The Hills, built in 1968, is situated on a two-acre hillside adjacent to Glendale Community College and close to the 134 and 2 Freeways. It comprises three, three- story buildings with open, tuck-under and garage parking. The complex features units from studios to two bedrooms, with floor plans measuring from 600 to 1,100 square feet. In-place rents range from approximately $1,400 to $2,100. Common area amenities include three elevators, a fitness center, pool with sundeck and several outdoor lounging areas.
Shafer and Zander added “With available capital outpacing multifamily offerings, the market continues to see significant cap rate compression. It also helps that experienced investors are finally able to realistically underwrite and value significant rent growth projections.”
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