Big deal: Sam Zell’s Equity Residential buys 398-unit Koreatown resi complex

The 398-unit Next on Sixth apartment building was developed last year

TRD LOS ANGELES /
Aug.August 26, 2019 05:00 PM
Michael Sorochinsky, Steven Fifield, Mike Parrell, and Next on Sixth
Michael Sorochinsky, Steven Fifield, Mike Parrell, and Next on Sixth

Multifamily giant Equity Residential is investing big in booming Koreatown and adding to its portfolio of Los Angeles properties.

The Sam Zell-led firm paid $189 million for the 398-unit Next on Sixth apartment building at 620 S. Virgil Avenue, according to Los Angeles County property records. The seller, Santa Monica-based Century West Partners, completed the development last year.

The 362,580-square-foot property was one of the largest projects to open in the L.A. area last year. Rents for studio units come in around $2,000 per month, according to the property’s website.

Century West was founded by Chicago-based developer Steven Fifield of Fifield Companies and Los Angeles-based Cypress Equity Investments’ CEO Michel Sorochinsky. The firm picked up the Next on Sixth development site in 2014 for $21 million and received permits for the seven-story building the following year.

Century West and Fifield are currently pursuing similar projects elsewhere in the L.A. area. In April, Fifield took out an $81.7 million construction loan for the second phase of a $150 million multifamily project in Venice. The Catherine Santa Monica residential development will have 282 units and 25,000 square feet of retail space.

The joint venture is also looking to build a 310-unit development in Monrovia, where the Metro Gold Line’s Monrovia Station opened in 2016.

Equity Residential, a real estate investment trust, saw a leadership change last year. Longtime CEO David Neithercut retired and was replaced by Mark Parrell. Zell is chairman of the company and its parent company Equity Group Investments.

The firm owns dozens of properties in the L.A. area and is one of the largest multifamily landlords in the country, but recently its been Zell’s off-color and vulgar comments that have put it in headlines, not its deals. Last summer, Zell came under fire for vulgar comments made about women.


Related Articles

arrow_forward_ios
Tani Cantil-Sakauye (Credit: Earl Gibson III/Getty Images)

Landlords sue California over eviction ban

Landlords sue California over eviction ban
An illustration of Jeanne Radsick and 525 S. Virgil Avenue (Credit: Google Maps)

California Association of Realtors’ new role? Mixed-use developer

California Association of Realtors’ new role? Mixed-use developer
Eric Garcetti, Nury Martinez, and Daniel Yukelson (Credit: Marc Flores and Alberto E. Rodriguez via Getty Imahes, Linkedin, and iStock)

LA landlords sue city over residential eviction ban

LA landlords sue city over residential eviction ban
Daniel Yukelson of Apartment Association of Greater L.A. and L.A. City hall (Credit: iStock)

For CA landlords, abysmal is the new normal

For CA landlords, abysmal is the new normal
Daniel Yukelson of Apartment Association of Greater L.A. (Credit: iStock)

Landlords fuming over sexual harassment “reports”

Landlords fuming over sexual harassment “reports”
Kevin Conway, director of acquisitions at IDEAL Capital Group in Clovis (Credit: iStock)

Don’t sound the alarm! CA May rent checks not in freefall

Don’t sound the alarm! CA May rent checks not in freefall
CGI’s Gidi Cohen and the Fedora Street project

CGI scores $48M in construction financing for Koreatown multifamily project

CGI scores $48M in construction financing for Koreatown multifamily project
Hobart Garden Apartments at 1344 N Hobart Boulevard (Credit: Google Maps)

Reiner Communities pays $48M for 142-unit East Hollywood complex

Reiner Communities pays $48M for 142-unit East Hollywood complex
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...