Westlake multifamily trades for $88.3M
LaSalle sold property to Chicago's Magnolia Capital, a newcomer to LA
LaSalle Investment Management has offloaded a 204-unit multifamily property in Westlake.
The Chicago investment management wing of JLL sold the “Canvas LA” property at 138 N. Beaudry to fellow Windy City investor Magnolia Capital for $88.3 million, or around $433,000 per unit. Magnolia secured a $52.1 million mortgage with a private lender for the purchase.
The four-story building was built in 2008 by Alliance Residential, which sold it two years later to LaSalle for $62.5 million.
Magnolia specializes in multifamily investments, and its purchase in Westlake appears to be its first in the L.A. market. The firm is looking to expand to Orange County, Riverside County, and San Diego as well.
Westlake, sandwiched between Koreatown, Echo Park, and Downtown, has seen a steady influx of multifamily investment in the last few years. Jamison Properties, PacTen Partners, and a number of smaller developers have all planned projects there.
One of the largest projects in the neighborhood just got the green light from the City Council. The Lake on Wilshire, a mixed-use project with a 41-story apartment tower and a performing arts center, is moving forward at W. Wilshire Boulevard and S. Westlake Avenue. It’s being developed by the Walter and Aesha Jayasinghe family trust.
LaSalle owns around 10 properties in the L.A. area. Recently, it’s been scooping up properties in Playa del Rey, a growing tech-oriented neighborhood near Venice and Marina del Rey that is part of burgeoning Silicon Beach. It picked up an industrial and office property there in January 2017 and a two-building low-rise office complex last week for $84 million.
LaSalle is also looking to raise $1 billion for its eighth value-add fund. That’s twice what it raised for its previous value-add fund, which closed last year at $510 million. The firm has already spent 80 percent of that.