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The Real Deal Los Angeles

The priciest multifamily deals of the summer

Strategic Housing Partners took the cake with a $178M portfolio
By Natalie Hoberman | September 01, 2017 08:00AM

Aimco CEO Terry Considine and the Palazzo apartments on Hauser Boulevard and 3rd Street

Multifamily property sales were in full swing this summer.

In a whopper of a transaction, Denver-based REIT Aimco paid its former partner, J.P. Morgan Asset Management, $451.5 million to regain full ownership of a three-property portfolio at Park La Brea.

Here are the top deals that occurred in the multifamily market from June 20 to Aug. 31, as recorded on CoStar — excluding stake sales like Aimco’s big buy.

Park Anza at 23818 Anza Avenue, Park Vista at 2570 W. 235th Street, Park Yukon at 16733 Yukon Avenue

The summer’s hottest sale took off on July 7, when Strategic Housing Partners paired with Rockpoint Group to acquire a three-property multifamily portfolio in Torrance. The developers paid $178 million to owner Don Wilson Builders for a combined 506 units across the Park Anza, Park Vista and Park Yukon complexes. The El Segundo-based venture has acquired $300 million of L.A. properties since launching last year.

8500 Sunset Boulevard (Credit: Jay Luchs)

8500 W. Sunset Boulevard

Hotel developer Korman Communities and Brookfield Property Group paid $168.2 million for a recently completed 190-unit complex on the Sunset Strip, marking the second largest multifamily sale this summer. CIM Group sold the 292,000-square-foot property on June 27. However, it will retain ownership of the ground-floor retail space, where Fred Segal recently signed a 22,000-square-foot lease.

The Current at 707 E Ocean Blvd, Long Beach (credit: Apartments.com)

The Current at 705 E. Ocean Boulevard

Up next was West Hollywood’s Sunset Group $132.9 million purchase of a high-rise property in downtown Long Beach, known as “the Current.” The Sunset Group, formerly known as Studio Management Services, purchased the 17-story, 223 unit site from Shoreline Gateway on Aug.23. The Current, which has a 10,000-square-foot plaza and 6,150 square feet of retail space opened in July 2016 and hit the market in February.

1515 Wilshire

Mobile home community developer Kort & Scott Financial Group’s purchase of the 218-unit Wilshire Valencia apartments came in fourth place. Beverly Hills developer Sonny Astani sold the recently developed site in the Westlake district for $83 million on July 10.