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PASADENA, CA-Blackrock has sold a 135-unit apartment complex here for $34.9 million in a transaction that marks the first core multifamily deal to close in California in the fourth quarter and one of the few to trade at any time this year, according to Moran & Co., the broker on the deal. Brett Betzler, a senior broker in Moran & Co.’s West Coast office in Costa Mesa, tells GlobeSt.com that the complex attracted 12 offers, primarily from institutional investors and REITs, with an institutional buyer submitting the winning bid. Betzler and Mary Ann King, Moran & Co. president and partner in charge of the West Coast office, were the listing agents for the property.

The property, at 325 Cordova St., is called the Arpeggio and consists of a four-story apartment complex over a two-level parking structure, with nearly 2,000 square feet of ground floor retail space. Betzler says that the factors that helped the deal to succeed despite the current economic and capital market conditions included the prime location of the complex near Old Town Pasadena and a purchase price that was well below the replacement cost of at least $300,000 per unit. He notes that several other bidders submitted offers in the same range as the buyer, who acquired the property with 1031 exchange funds.

The Arpeggio, which was 93% leased at the time of the sale, includes 91 one-bedroom units and the rest two-bedroom apartments. The units range from 560 square feet to 1,095 square feet, average 894 square feet and rent for an average of $2,129. The complex was built in 2001, and Blackrock had owned it since 2002.

Commenting on the location of the Arpeggio, Betzler notes that it is within a block of Old Town Pasadena and a host of other amenities, including shopping, transportation and job centers. These include the 500,000-square-foot Paseo Colorado shopping center, the Pasadena Civic Auditorium, the Pasadena Playhouse, the South Lake Avenue retail district, the Rose Bowl, the Norton Simon Museum and the Huntington Library & Botanical Gardens.

The two largest employers in Pasadena, Caltech and NASA’s Jet Propulsion Laboratory, are within 10 minutes of Arpeggio and employ approximately 9,000 workers combined. The complex is two blocks from the Del Mar Station of the Metro Gold Line, which is about a 20-minute ride to Downtown LA.

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