Long Beach garden complex trades for $51M

Los Angeles /
Jul.July 06, 2018 11:15 AM
The Patio Gardens apartment complex

A Long Beach garden apartment complex has sold for $50.7 million, yet another in a series of multifamily investments in the South Bay city.

Los Angeles family firm HFH Ltd. paid just under $400,000 per unit for the Patio Garden complex at 4826-5002 E. Los Coyotes Diagonal, according to Real Capital Analytics.

The seller was NorthPort Realty, a Long Beach firm that bought the property in mid-2016 for $35.3 million. NorthPort later renovated the property.

The sale was the third time the property has traded hands since 2012, when it sold for less than half that amount.

The 127-unit complex was built in 1958 and includes 19 two-story buildings. It’s last sale prior to NorthPort’s purchase was in 2012 when it traded for $23.2 million.

Long Beach has seen a flood of multifamily investment over the last year to the tune of around $1 billion. That includes the sale of 450 multifamily homes. Unit prices have doubled since 2014 and that means margins are tighter — cap rates dropped by around 200 basis points in that time.

Large firms have got in on the action too. In March, Greystar picked up a 211-unit complex with plans for extensive upgrades.

HFH wholly owns at least eight properties in the L.A. area and has varying interests in another eight, most of which it also manages. All but six are apartment complexes.


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