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LOS ANGELES, CA-Chesapeake Real Estate Value Investors, a fund managed by locally based Legg Mason Real Estate Investors, has acquired the 123-unit Pacific Pointe apartment complex at 13811 Shoemaker Ave. in Norwalk from Los Angeles-based Madonna Properties for slightly more than $18 million. Partner Dean Zander of the Los Angeles office of Hendricks & Partners, the broker on the deal, tells GlobeSt.com that the new owner plans to invest approximately $18,000 per unit in upgrades to the 40-year-old property.

Zander notes that Pacific Pointe was offered at an asking price of $18.35 million and that the selling price “reflects a realistic adjustment in response to today’s capital markets.” He says that the buyer “recognized an excellent opportunity to purchase an underperforming asset with a genuine value-add component in a strong rental location.”The seller “was aware of today’s underwriting and fundamentals and acted accordingly,” Zander adds.

Units at Pacific Pointe range from one to three bedrooms and from 650 sf to 1,000 sf, with in-place rents at $925 to $1,845. Common area amenities include two pools and spa, fitness center, recreation room, leasing office and more.Madonna Properties owned the complex for more than 25 years before the recent sale to Legg Mason. The new owner is an investment fund with $300 million in national real estate holdings managed by Legg Mason Real Estate Investors.

Zander says that Chesapeake plans to upgrade the property to “the best of its class in its South Los Angeles County submarket.” Jay Gangwal of Legg Mason says that the new ownership plans to realize the full potential of the property through “an extensive capitalimprovement plan and institutional management.”

Pacific Pointe is situated on more than three and a half acres east of the Interstate 5 Freeway and immediately adjacent to a golf course. Zander comments that the location of the complex along the 605-Corridor offers “great access to all of Los Angeles County and Orange County,” so the occupancy and rental market should remain strong. Gangwal adds that the location is in “a strong infill market that has not seen new supply enter the submarket in over 10-years.

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