In a sign of mounting demand for investment in the area, a New York-based firm bought an apartment complex in West Covina this week.
An affiliate for New York-based Abacus Capital Group, LLC, bought the Atrium Apartments at 1829 E. Workman Ave. for $33.9 million, CBRE said. It was the firm’s first purchase in Southern California.
San Diego-based MG Properties Group was the seller.
The 138-unit property in the San Gabriel Valley features two- and three-bedroom apartments, which each have an average of more than 1,000 square feet. The property includes three swimming pools and a fitness center. It has averaged less than 4-percent vacancy since 2016.
The West Covina area has been a “submarket with extremely high barrier to entry,” said Dean Zander with CBRE, who represented MG Properties Group. Earlier this year, CBRE also represented a partnership associated with Landmark Properties in the purchase of another West Covina multi-family complex for $18.8 million.
A lack of supply and the strong demand have buoyed rents and kept occupancies high, according to CBRE research. Only one conventional market-rate property, with 450 units, has been built in the West Covina/Covina submarket since 1990. No new projects are planned.