We’ve learned of two Los Angeles apartment properties that recently traded hands in deals totaling over $20 mil. Both properties, mid-sized assets on the border of Echo Park, were sold by the same family trust and acquired by a single buyer, Optimus Properties LLC.
Both properties were constructed after 1978 and subject to the statewide rent control ordinance, AB 1482, but excluded from Los Angeles’ City Rent Control mandates (RSO). In both transactions, the seller was represented by Bryan Schellinger and Steven Goldstein with Northmarq.
One of the sales was for a 42-unit community located at 301 North Alvarado. Constructed in 1989, the property was purchased for $13.9 mil ($323k/unit). The deal closed at a cap rate of 4.00%.
The other sale was a 23-unit community just down the street, at 223 North Alvarado. Built in 1989, the property fetched $7 mil ($304k/unit). This deal also closed at a 4.00% cap rate.
“The seller has strategically been repatriating capital into other product types or out of state, and the sale of The Alvarado Collection affords him the opportunity to once again capitalize on this strategy. Alternatively, this purchase for the Buyer is a catalyst for a programmatic venture to acquire more assets within the same submarket, adding scale to their portfolio,” said Schellinger.