The Interstate Equities Corporation acquired a 126-unit multifamily property in Glendale, Calif. for $54.2 million, or more than $430,000 per unit. The deal pencils out to approximately $378 per square foot.
The firm used its IEC Institutional Fund II, L.P., a discretionary, $200 million commingled fund targeting multifamily investments throughout coastal California, for the purchase. The deal marked the fund’s seventh acquisition.
The community, known as Verdugo Village at 1717 North Verdugo Road, was built in 1965 and renovated in 2007 to condo specifications, according to a release from IEC. It is currently 96 percent occupied. The property will be rebranded Towne at Glendale and undergo a series of capital improvements under its new ownership, including the installation of a new fitness center.
Peter Casey, a director at IEC explained that while IEC sold five units for every one it purchased this year, it’s acquisition pipeline remains robust. “While we continue to seek opportunities to expand our multifamily portfolio, we are also being increasingly selective in the investments we pursue,” he said in a statement.
Brokers Adrienne Barr and Shane Shafer of Berkadia represented the seller, Grand Villa Glendale, LLC, an entity with links to a Redwood mortgage provider. The property last changed hands in a 2009 foreclosure proceeding, records show.
The acquisition loan, provided by CIT Bank, N.A., was arranged by Peter Smyslowski at HFF.