This Secondary Location Has Higher In-Place Yields

CANOGA PARK, CA—Cores Management has purchased the Verandas apartment complex in Canoga Park from Canoga Mountain View Associates for $26.3 million. The property attracted ample attention from investors because it offered higher in-place yields than properties two miles south in the heart of the Warner Center.

“The property is a core plus asset, luxury, condo quality, built only a few years ago in an improving, secondary location,” Peter Sherman, a broker at CBRE, tells GlobeSt.com. “This was an opportunity to acquire at a higher in-place yield than similar quality assets two miles south in the heart of warner center while still benefiting from the same demand drivers due to the property's proximity and access to jobs/retail/entertainment amenities in the area.” Sherman represented the seller in the transaction along with his colleagues Curtis Palmer and Ted Fentin, while Keller Williams Beverly Hills and Sami Dinar represented Cores.

Located at 21535 Roscoe Blvd., the property has 81 units and is 95% leased. The interior units feature 20-foot ceilings wrap-around terraces and rooftop decks. Onsite amenities include courtyards, fountains, a pool and spa, Wi-Fi lounge and gym. The quality product attracted nine offers from high net worth buyers and private investors backed by institutional capital. According to Sherman, the seller disposed of the asset as the result of an internal fund decision.

The property came to market in March of this year. Due to high demand from buyers, it sold and closed in less than three months.