Four L.A. Multifamily Properties Trade for $12M

(Save the date: RealShare Apartments comes to the Westin Bonaventure, Los Angeles, October 24.)

LOS ANGELES-GlobeSt.com has exclusively learned that a portfolio of four multifamily properties in the Brentwood and West Los Angeles communities of Los Angeles has sold in separate transactions totaling more than $12 million. Lee & Associates-LA North/Ventura principals Mike Smith, Jim Fisher and Craig Stevens, represented the seller in all the transactions and the buyers in two of the transactions.

According to Smith, “The story is really about the Brentwood and West Los Angeles markets. Demand for assets in these neighborhoods is extremely strong. We received these offers within two weeks from the start of marketing.”

In addition, Smith says, “the current rents on these properties were under market, making them excellent long term value-add investments for the buyers.” While Smith tells GlobeSt.com that he cannot discuss exact rents at this time, he explains that the buildings were all purchased as long term holds “at extremely aggressive prices which count on future rental growth.”  The buyers for each of the Brentwood assets plan on renovating each unit as they become available, he says, “in order to achieve top of the market rents.”

The properties sold included an 18-unit apartment building at 11956 Gorham Ave. and nine-unit building at 11655 Mayfield Ave., both in Brentwood; and a 19-unit property at 1275 Federal Way and an eight-unit building at 1522 Armacost Ave. in West L.A. “We received over 10 offers on each of the buildings in just the first 10 days of marketing,” Fisher says. “Two of the assets sold above the asking price.”

Both of the Brentwood assets sold at a cap rate under 4%. The properties had not traded for at least 20 years.

The team of Smith, Fisher and Stevens, represented the buyers, Carlton Cuse and Xenon Corp., for the Mayfield and Federal assets, and, in conjunction with the Beaumont Co., represented the seller, the Maniatakos Family Partnership, in all four.

The buyers of the Gorham and Armacost properties, Gregory Chazanas and Gaby Chazanas and Fred Nayassan, were represented by Scott Garland of Miller & Desatnik.