CULVER CITY, CA—The influx of tech and creativecompanies in the Culver City, CA market is drivingrental rates and property valuesup, especially for luxury apartment buildings,according to Greg Harris, executive director atInstitutional Property Advisors. In an earlierstory, GlobeSt.com reported that Harris represented the seller,MWest, in the disposition of Keswick Court Apartments, a 60-unit,luxury apartment complex. The buyer purchased the property in theupleg of a 1031 exchange, but more generally, thesale indicates the rising demand for quality multifamily in thearea.

“The asset was located adjacent to growing startup tech andmedia companies fostering new high earning tech professionals thathave a demand for luxury housing,” Harris tells GlobeSt.com. “AsCulver City continues to cultivate new employment, the submarket isrealizing significant rent growth and value appreciation. Theproperty has benefited from the high paying jobs in themarketplace, and will continue to do so for the foreseeablefuture.”

Harris received significant attention from potential buyers forthe property because, as he notes, it “appealed to the entirespectrum of the buyer pool ranging from private real estatepartnerships and companies to sponsored capital andinstitutions.” In the end, he had 10 offers on the table and theselected buyer was a local, private investor, whowas interested both for the close proximity to job centers anddemand for housing as well as the property's revenue stream. Theproperty has a value-add component as only 35 units have beenupdated. The buyer has a great opportunity to build revenue byupdating the remaining units.