GLENDALE, CA—A private investor has sold the AdamsStreet Apartments in Glendale for nearly $2 million overthe list price in a 15-buyer bidding war. The property is locatedin a great location and has a value-add componentand rental upside, which helped to attract strong buyer interest.However, with prices hitting their peak in more primary L.A.markets, we may be seeing more and more investors heading to thetri-cities market this year.

"I am seeing a lot of buyers, whether institutional or private,starting to look at Glendale, Pasadena and Burbank as a market thathas a lot of upside in rents," DavidLeibowitz, VP at Investment Real EstateAssociates, tells GlobeSt.com. "I think you are going tosee some leveling off in general with the Fed raising the interest rate, and there isgoing to be an impetus to have the market somewhat stabilize. But,even with interest rates starting to go up, which could stabilizethe market, there are a lot of eyes looking at potential for rentgrowth in these areas as far greater than comparable locations. Ithink that 2016 is going to be a very strong year." Leibowitzrepresented the buyer and the seller in the transaction, along withEVP Chris Thompson.

The property traded hands for $21.1 million, and came to marketwith a $19.4 million list price. Right away, the sales teamreceived an aggressive above-market offer, and the prices continuedto escalate from there. "We exposed this fully to our buyer pooland on the Internet, and there was a tremendous amount of interestfor this property," adds Leibowitz. "The property has a value-addcomponent, low rents and a fantastic unit mix. We got an all-cash,non-contingent offer right away that was over the asking price.There were a handful of offers that really wanted the deal, and itjust became a bidding war. We made it through a couple of rounds,and went to a best and final round and all of those offers wereabove the asking price."