AEW Capital trades Hollywood apartment complex for $48M 

Investment firm sells 136-unit Poinsettia Place as part of divestment strategy

AEW Capital's Jonathan Martin with 1535 North Formosa Avenue
AEW Capital's Jonathan Martin with 1535 North Formosa Avenue (AEW Capital, Google Maps, Getty)

UPDATED: APRIL 27 at 11:45 a.m.:

AEW Capital has cashed out of Poinsettia Place, a 136-unit apartment complex in Hollywood, The Real Deal has learned. 

The 124,500-square-foot property, located at 1535 North Formosa Avenue — a mid-block parcel that sits between Hawthorne Avenue and Sunset Boulevard — changed hands in a $48.3 million deal, according to a deed filed with Los Angeles County. 

The buyer is a Delaware-based entity called Phoenix Group Management. The limited liability company is represented by Calabasas-based lawyer M. Randel Davies. 

Sign Up for the undefined Newsletter

AEW Capital, which is based in Boston, is owned by French asset management firm Natixis. The deal advances the company’s divestment from the real estate sector. 

According to S&P Global, AEW decreased its stake in 25 U.S. real estate investment trusts in the fourth quarter of last year. The firm also exited three of its REIT positions during the period. The company’s biggest divestment was with office REIT Alexandria Real Estate Equities. During the period, AEW reduced its stake in the company by 68.9 percent. 

Last month, the firm, along with partner Redco Development, relinquished ownership of the First National Bank Building in San Francisco after failing to make mortgage payments. The joint venture, which conveyed the property to lender Square Mile Capital, paid $84 million for the asset in 2019. AEW declined to comment. 

Poinsettia Place was originally a joint venture between AEW and Pacific Urban Residential, according to property records. Pacific Urban sold its stake in 2018, the company told TRD. Pacific Urban and AEW paid $23.5 million for the Poinsettia Place asset in July 2014.

Phoenix Group Management, the new owner of the property, funded the acquisition with a $30 million mortgage. The lender for the deal is CYK Legacy.

Correction: Previous version of the story said the Pacific Urban and AEW joint venture sold the complex.