LOS ANGELES—KBS Strategic Opportunity REIT II and MWest Holdings have partnered to purchase the Lofts at NoHo Commons for $102.5 million from an unnamed seller. This is a value-add play for the two investors, which have targeted the North Hollywood market for investment. The market has strong tenant demand and benefits from many of the same fundamentals as other emerging markets, like Koreatown, Echo Park and East Hollywood, where MWest has also invested in value-add projects.
“The property is location at the center of the NoHo Arts District and presents us with a great opportunity to improve the property and reposition it to meet the strong multifamily demand in that market,” Shep Wainwright, SVP and asset manager at KBS Strategic REIT II, tells GlobeSt.com. “We were attracted by the strong tenant demand for this type of product in the North Hollywood market. We cannot forecast if we will buy other assets in this market, but it is on our radar.”
This is KBS and MWest's first deal together. Wainwright says the firm's history and experience expecting value-add business plans, like this, made them a perfect partner for this deal. “MWest has a solid track record of creating innovative development solutions with the instill of a neighborhood, integrity and create lasting tangible value,” he says. “MWest specializes in enhancing properties like the Lofts at NoHo Commons.”
The property was built in 2007, and needs “significant operations and physical improvements.” The property has a mix of studio lofts and one-bedroom apartment units, and has a clubhouse, business center, fitness room and underground parking with space for more than 400 cars. MWest will lead the renovation. “This property was originally delivered before the recent transformation of the neighborhood into the strong multifamily market that it is today. Some of these planned improvements include a complete renovation of the outdoor pool area to create a resort feel for tenants,” explains Wainwright about the renovation plans. “We also plan to add hospitality-like amenities for tenants to gather and/or entertain guests including outdoor TVs, fire pits, gaming areas and comfortable outdoor seating. We also plan to upgrade and modernize the tenant lounge as well as the main entrance to the property. Upgrades to units will include kitchen upgrades for more of a luxurious feel as well as upgrading the bathrooms so they are warm and inviting.”
LOS ANGELES—KBS Strategic Opportunity REIT II and MWest Holdings have partnered to purchase the Lofts at NoHo Commons for $102.5 million from an unnamed seller. This is a value-add play for the two investors, which have targeted the North Hollywood market for investment. The market has strong tenant demand and benefits from many of the same fundamentals as other emerging markets, like Koreatown, Echo Park and East Hollywood, where MWest has also invested in value-add projects.
“The property is location at the center of the NoHo Arts District and presents us with a great opportunity to improve the property and reposition it to meet the strong multifamily demand in that market,” Shep Wainwright, SVP and asset manager at KBS Strategic REIT II, tells GlobeSt.com. “We were attracted by the strong tenant demand for this type of product in the North Hollywood market. We cannot forecast if we will buy other assets in this market, but it is on our radar.”
This is KBS and MWest's first deal together. Wainwright says the firm's history and experience expecting value-add business plans, like this, made them a perfect partner for this deal. “MWest has a solid track record of creating innovative development solutions with the instill of a neighborhood, integrity and create lasting tangible value,” he says. “MWest specializes in enhancing properties like the Lofts at NoHo Commons.”
The property was built in 2007, and needs “significant operations and physical improvements.” The property has a mix of studio lofts and one-bedroom apartment units, and has a clubhouse, business center, fitness room and underground parking with space for more than 400 cars. MWest will lead the renovation. “This property was originally delivered before the recent transformation of the neighborhood into the strong multifamily market that it is today. Some of these planned improvements include a complete renovation of the outdoor pool area to create a resort feel for tenants,” explains Wainwright about the renovation plans. “We also plan to add hospitality-like amenities for tenants to gather and/or entertain guests including outdoor TVs, fire pits, gaming areas and comfortable outdoor seating. We also plan to upgrade and modernize the tenant lounge as well as the main entrance to the property. Upgrades to units will include kitchen upgrades for more of a luxurious feel as well as upgrading the bathrooms so they are warm and inviting.”
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