LA-based Strategic Housing Partners plans to spend $500M on rental properties

JV firm already invested $300 million since launching last year

Steven Ludwig, co-founder of Coastline Real Estate (credit: Steven Ludwig)
Steven Ludwig, co-founder of Coastline Real Estate (credit: Steven Ludwig)

Strategic Housing Partners is on a shopping spree.

The El Segundo-based joint venture between Coastline Capital Partners in El Segundo and JDR Holdings in New York has added nearly $300 million of L.A. rental properties to its portfolio since launching last year. It makes its purchases in partnership with Boston-based Rockpoint Group.

Strategic Housing expects to spend another $500 million on acquisitions over the next 12 months, REAlert reported. 

Principal Steven Ludwig, co-founder of Coastline, said the JV investment firm is focused primarily on Southern California properties it can upgrade to increase rents.

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Its most recent acquisition was a portfolio of townhomes in Torrance. Strategic Housing paid $178 million to owner Don Wilson Builders for 506 units across three craftsman-style properties. It plans to spend about $20 million on upgrades such as new bathroom fixtures and stainless-steel appliances. 

The properties include the 239-unit Park Anza, the 183-unit Park Vista and the 84-unit Park Yukon. Seller Don Wilson developed the townhomes in the 1960s, according to CIJ Journal.

Ludwig said the firm is especially focused on L.A. County, where he feels demand outstrips development.

“If you look at the number of new units being built, we have some of the lowest ratios [to existing stock] in the country,” he said to REAlert. “And the new construction is concentrated in a few areas.”

The JV’s other recent deals include the $34.3 million purchase of the 94-unit Marathon Towers at 4150 Marathon Street in March and last year’s acquisition of 14 San Fernando Valley properties, totaling 592 units, in several transactions totaling $81.2 million.  [REAlert] — Subrina Hudson