Champion sells student apartments near USC
Santa Monica-based bought 24-unit complex in 2018 for $12.5M
Champion Real Estate has sold a 24-unit student housing complex near USC for $20.5 million.
The Santa Monica-based firm sold its 96-bed Victory on Ellendale property at 2652-2656 Ellendale Place in University Park to an undisclosed buyer, Yield Pro reported.
Champion bought the twin-building complex, which dates to 1963, for $12.45 million in 2018.
It renovated each unit with new stainless steel appliances, quartz countertops, cabinetry, hardware, lighting, window coverings, vinyl plank flooring, bathroom upgrades and paint.
Until the sale, the two-story complex was among six student housing assets owned by Champion near the University of Southern California campus.
“In just a few short years, we have seen the Los Angeles student housing market grow significantly and as a result, cap rates compress,” said Garrett Champion, senior vice president of the family owned firm. “This growth provided an ideal exit opportunity for Champion.
“While we prefer to hold deals for long term cash flow,” he added, “we had already identified a 1031 exchange property providing a tax efficient investment for our investors.”
Arthur Arejian and Jon Tran of Vanguard Investments, based in Koreatown, represented the buyer and seller.
While student housing rebounded in 2021 with the return to in-person classes, it remains unclear if and how the Omicron variant will impact the market.
Champion Real Estate was founded in 1987 by investor/developer Bob Champion, its CEO, and is the main operating business within the Champion family office, according to its website.
Since 1995, it has completed 3 million square feet of projects, valued at more than $2 billion. Its investment portfolio includes properties across Southern California, Seattle, and Nashville, Tennessee, plus other select metropolitan areas.
In 2020, it won approval for plans to build a 30-story, 269-unit tower in Hollywood, after strong opposition from local residents.
[Yield Pro] – Dana Bartholomew