Benedict Canyon nabs tidy profit on Santa Clarita apartment complex
Buyer MKB Ventures paid $54M for 148-unit Retreat, over half what seller had paid
Multifamily investor Benedict Canyon Equities has sold a 148-unit apartment complex in Santa Clarita for 55 percent more than it paid three years ago.
The Brentwood-based firm sold the Retreat at 2290 Oak Ridge Drive to MKB Ventures for $54.1 million — or about $365,500 a unit — according to Commercial Observer.
Benedict Canyon bought the property from Silkand Engineering Associates for $35 million in March 2018.
The Retreat comprises seven buildings and includes two pools, a gym and a clubhouse. The complex was completed in 1988. Apartments average 972 square feet and are a mix of one-, two-, and three-bedroom units.
Investors have shown more interest in L.A.’s suburban markets like Santa Clarita since the pandemic, which drove some renters in urban neighborhoods to seek more space elsewhere.
Multifamily giant Fairfield Residential recently purchased its first asset in Santa Clarita, paying $62 million for a 130-unit complex a few miles away from the Retreat.
The suburban flight phenomenon, although not as drastic as some expected early in the pandemic, is expected to fuel rent hikes in suburban markets including San Bernardino and Riverside counties.
Benedict Canyon has nearly 10,000 apartment units under management across the Western U.S. Past investments include a senior living facility in Hacienda Heights, which sold in late 2019, and a Downey apartment complex, which sold in 2018.
[CO] — Dennis Lynch