Irvine-based IRA Capital has bought a 155-unit portfolio of apartments in Long Beach.
The firm has acquired 17 properties, which are primarily located in the North Alamitos Beach section of Downtown Long Beach, for $42 million — around $270,000 per unit, IRA Capital announced on Monday. The seller of the portfolio was not disclosed.
IRA Capital said it was looking to add up to 33 accessory dwelling units at the property.
IRA Capital has been busy the last few months, buying a 95,000-square-foot office property at 325 North Maple Drive in Beverly Hills for $153.2 million in October and a 154,400-square-foot property in Irvine for $103 million.
The firm currently owns 300 residential units across Southern California and “intends to further increase its investment into the multifamily asset class both locally and nationally,” it said in a statement.
Long Beach, around 25 miles south of Downtown Los Angeles, was recently named one of the country’s most unaffordable housing markets — edging out San Francisco, according to a report from RealtyHop.
The report found that the average household in Long Beach would have to spend 65.5 percent on monthly mortgage payments and taxes on a median-priced home across the city.
Rents have also risen across the city, hitting an average of $1,675 a month for a one-bedroom, according to Zumper, a 6 percent increase from this time last year. In Downtown Long Beach, median rents are $2,362 a month.
With rising rents, investors have started to focus on Long Beach as a site for multifamily development. Earlier this month, Onni Group bought a 6.2-acre strip mall for around $68 million and plans to build a multifamily complex on the site.