NORTH HOLLYWOOD, CA—Vista Investment Group hasacquired the NOHO Lofts fromCityView for $18.7 million in the upleg of a 1031transaction. The 68-unit apartment complex is theonly adaptive reuse property in the area with bothmultifamily and office space. Thesale included a fully entitled parcel of land adjacent to thecomplex.

The listing received strong interest from potential investorsand multiple offers, largely due to the presence of both commercialand residential space. Several of the investors sought toreposition the property into condominiums anddevelop the adjacent parcel.

Vista, however, won the bidding frenzy after offering to assumethe property's existing debt and put 38% down. In the end, itpurchased the property with a 5.5% cap rate and a 3.7% fixedinterest rate. The investment platform plans to continue to leasethe property rather than convert the units into condominiums. Asfor the entitled parcel, Vista has expressed interest in developing38 additional units and 80 parking spaces.