Multifamily giant Essex Property Trust has sold a 115-unit apartment complex in Glendale.
Fairmont Management president Ron Nasch paid $60 million for the property at 416 East Broadway, according to Commercial Observer. Built in 2009 as condominiums, Essex acquired the building and later converted the units to rentals. Walker & Dunlop represented both parties in the deal.
Rents range between around $2,550 and $3,130 per month. Units are a mix of one- and two-bedrooms with an average size of about 1,100 square feet, and some of the two-bedroom units have lofts.
The deal is just the sixth institutional multifamily sale in Glendale since 2009. The city and its neighbors Burbank and Pasadena have historically strong multifamily markets.
San Mateo-based Essex owns around 60,000 apartments, mostly on the West Coast. The company spent over $16 million to oppose Proposition 21, a ballot measure that would have allowed for stronger rent control in California. It was rejected by voters in last week’s election.
The company reported a $17 million drop in funds from operations at its most recent earnings call. Executives said that was due in large part to concessions paid to renters.
It also reported occupancy was steady at around 96 percent, but some urban areas including Los Angeles saw declines. Upticks in occupancy at suburban properties helped soften that loss. [CO] — Dennis Lynch