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Clarion Partners sells Playa Vista apartments at slight discount

Divco West buys 214-unit property for $122M, which was subject to ULA tax

Clarion Partners Sells Playa Vista Apartments for $122M

From left: Clarion Partners CEO Dave Gilbert and Divco West CEO Stuart Shiff along with 5710 East Crescent Park in Playa Vista (Getty, Clarion Partners, Divco West, Google Maps)

Clarion Partners has sold an apartment complex in Playa Vista for $122 million, a price that technically amounted to a discount after the city took its 5.5 percent tax on the sale under Measure ULA, The Real Deal has learned. 

San Francisco-based DivcoWest bought the 214-unit Reveal Playa Vista, located at 5710 East Crescent Park, according to property records filed with Los Angeles County. The deal came out to about $570,000 per unit. 

Clarion bought the property for $117.5 million, or roughly $549,000 per unit, in 2018, records show. 

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Things have changed in Los Angeles since then. The city now has a 5.5 percent transfer tax on all commercial sales of more than $10 million.

Clarion had to pay the city almost $7.3 million under the tax, according to the deed for the property. Taking that off the top, the sale yielded about $114.7 million for Clarion. The company did not respond to a request for comment.

Monthly rents at Reveal Playa Vista range from about $3,500 for a one-bedroom to about $5,000 for a two-bedroom, according to online listings for the apartment complex. 

The median rent for a one-bedroom unit across the market from Westchester to Playa del Rey, where Playa Vista is located, was $2,830 last month, down about 8 percent over the last year, according to Zumper. 

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