Competition for Multifamily Product Soars

GLENDALE, CA—IMT Capital has sold the IMT Glendale Apartments to an unnamed private buyer for $20.4 million. The 67-unit multifamily property is located in a high demand area of the Glendale market, and generated 54 confidentiality agreements from interested institutional and private investors.

The Glendale market has recently experienced a development surge with 3,000 new-construction or renovated units coming online. There is a limited supply of apartment complexes over 50 units, making this particular property a hot opportunity for investors. “The seller felt it was a good time to sell for many reasons: the lack of good product in the market, the favorable financing available and the low cap rates, which equate to higher pricing,” Jim Fisher, a principal and managing director at Lee & Associates North LA/Ventura office, tells GlobeSt.com. Fisher represented both the buyer and the seller in the transaction, along with principal Mike Smith.

According to Fisher, the property drew so much attention because “it is a well-located asset in a high-demand area.” After the sales team received the high level of interest, one buyer came in with a strong offer to avoid a bidding war and won the property. “The buyer made an offer that was very close to the asking price,” says Fisher. “He had a very short due diligence period of three days and had the financial ability to close.”

According to Fisher, the development of new luxury properties in the market has led to an increase in rents, making existing properties all the more valuable. Development in the market has been driven by the Disney campus and DreamWorks campus, which provide a need for luxury housing for employees.

The construction surge has now bled into other sectors. Caruso Affiliated has purchased the Masonic Temple near the Americana at Brand with plans to develop the property into creative office space. The property will also include a retail component.