Beverly Hills-Based Firm Buys Los Angeles Apartments

Concord Capital Partners is growing its multifamily holdings in Los Angeles.

The Beverly Hills-based investment firm paid $79 million to two sellers in separate deals for five historic properties in Hollywood, Koreatown and Westlake, Commercial Observer reported. In total, the buildings have 537 units and were all constructed in the 1920s.

In Hollywood, Concord snapped up The Fontenoy, a 51-unit building at 1811 Whitley Avenue. Farther south in Koreatown, the firm acquired The Langham, a 181-unit building at 715 Normandie Avenue; The Sir Francis Drake, a 61-unit property at 841 Serrano Avenue; and The Piccadilly, a 74-unit property at 682 Irolo Street. To the east in Westlake, Concord grabbed Park Wilshire, a 170-unit building at 2424 Wilshire Boulevard.

The Seligman Group sold the Fontenoy, Langham, Sir Francis Drake, and Piccadilly buildings, while Midwood Investment & Development offloaded the Park Wilshire. Concord executed the acquisition using a $60.5 million senior loan from Arbor Realty Trust as well as $30 million in equity.

“We were attracted to these properties because of their favorable pricing relative to historical sales, replacement costs, and what we view as the intrinsic value of the assets,” Reuben Robin, Concord’s CEO and founding principal, said in a statement, per CO. “The properties have seen strong Class A renter demographics across nearly a full century of market cycles.”

The prices that Concord paid for each property aren’t clear, but it’s likely that it got them at a discount from their previous values, according to CO. Midwood, for example, acquired Park Wilshire in 2019 for $38.2 million — nearly half of what Concord paid for all five buildings.

“Los Angeles is one of the most difficult cities in which to build scale, given the relatively small size of most buildings,” Jonathan Fhima, Concord’s chief investment officer and managing principal, said, per CO. “We’ve successfully assembled 537 units with significant value-add potential across five of L.A.’s most historically significant properties — buildings that have housed icons such as Marilyn Monroe, multiple U.S. presidents and other high-profile figures.”

The multifamily market in Hollywood has seen some big-ticket activity over the past year. Earlier this month, Grubb Properties and PCCP paid $98.4 million for the 280-unit Fifty Five Fifty Apartments at 5550 Hollywood Boulevard. In December, Cityview paid $35.5 million for a 112-unit building at 1950 Tamarind Avenue.

— Chris Malone Méndez