Equity Residential sells Chatsworth apartment complex for $107M

Equity Residential has sold an apartment complex in the northwest San Fernando Valley to IMT Residential for about $107 million. 

The deal for the 280-unit Summerset Village in Chatsworth came to about $381,000 per unit, according to an announcement from Marcus & Millichap’s Institutional Property Advisors, which brokered the deal but did not disclose the buyer or the seller. IMT announced it bought Summerset Village last week without disclosing a price. 

Equity Residential, L.A.’s largest landlord, had owned Summerset Village for more than 25 years. Both the land and the property, built in 1986, cost the company about $26.3 million, according to SEC filings. 

The property at 11450 Poema Place is one of 10 apartment complexes in the northwest Valley built since 1980 that has 200 units or more, according to IPA broker Kevin Green. 

“Chatsworth is greatly undersupplied with luxury housing communities of 50 units or more,” IPA broker Joseph Grabiec said in a statement. “Because of this scarcity, large value-add assets like Summerset Village tend to thrive after renovation.”

Given the property is located within the city of L.A., Equity Residential had to cough up a 5.5 percent transfer tax on the deal — part of Measure ULA that came into effect on April 1. 

On this deal, that tax came out to nearly $5.7 million. 

IMT Residential has continued buying apartment complexes in Southern California, even as rising interest rates have led many buyers to sit on the sidelines. 

Last month, the firm bought a 348-unit complex in the Orange County city of Laguna Niguel for $153 million, or roughly $440,000 per unit.