The Lighthouse Group bought its second Hollywood apartment complex this year.
The Pacific Palisades-based firm purchased the 218-unit property at 1714 North McCadden Place for $73.9 million, or $338,991 a unit, from an entity connected to New York Life Real Estate Investors, whose Erik Pentland signed the deed, property records show. The price is a 27 percent discount from the property’s previous trade.
Lighthouse Group CEO Gary Leshgold confirmed the deal. New York Life declined to comment.
Keybank provided a $52 million loan. Cushman & Wakefield brokered the deal.
Leshgold rebranded the four-story apartment complex to Fusion Encore Hollywood. It was called Alaya Hollywood before, and earlier, Rubix Hollywood. He said the company is “bullish on Hollywood,” and he plans to renovate the apartments to match the competition: other Class A apartments in the movie capital. The complex’s amenities include a pool, hot tub and shaded cabanas.
The complex’s previous sale price was $109 million in 2016, according to a person familiar with the matter.
The deal was the second Hollywood Class A multifamily buy in six months for the Lighthouse Group, which purchased a 161-unit apartment building at 5750 Hollywood Boulevard for $54.5 million earlier this year from developer Wood Partners.
Hollywood has a 5.7 percent multifamily vacancy rate and commands an average rent of $2,974 per unit, according to CBRE. That vacancy rate is higher than the average for all of Los Angeles, but so is the typical rent.
In Los Angeles during the second quarter, the priciest sale per unit was the Moderna Glendale, which Sobrato Development purchased for $126 million or $536,170 per apartment; the second was Grubb Properties’ The Fifty Five Fifty buy for $98.4 million or $351,250 a unit; and the third was JRK Property Holdings’ Chase Knolls deal that came out to $83.8 million or $322,319 per apartment, according to CBRE.
Read more
Commercial
Los Angeles
Swift pays $193M for Pasadena office portfolio
Commercial
San Francisco
Swift surrenders San Francisco industrial building to lender