A company connected to AEW Capital Management purchased a seven-story apartment complex for $159 million, according to property records.
The sellers were Cal-Coast Development and Rescore — a real estate investment trust managed by Encore Capital Management. They jointly developed the project — called “The Rise Hollywood,” now “The Ovelo” — at 1331 North Cahuenga Boulevard.
AEW Capital Management and Encore Capital Management did not immediately respond to a request for comment; Cal-Coast Development could not be immediately reached.
The property is on 2.5 acres in Hollywood’s Entertainment District, and includes 369 apartments and about 2,600 square feet of ground floor commercial space.
Hollywood has an about six percent vacancy rate for multifamily, with an average monthly rent of close to $3,000 per unit, according to a second quarter CBRE market report. Both the vacancy rate and average monthly rent are higher compared with the Los Angeles market overall.
AEW Capital Management’s $159 million tops a recent big multifamily deal by Mountain View-based Sobrato. The company purchased the Modera complex in Glendale for $126 million. That sale was pricier on a per apartment basis, coming out to $536,000 a piece compared to AEW Capital Management’s $431,000.
AEW Capital Management, one of the largest real estate investment managers in the world, recently sold an apartment building on the Miami River for $108 million, listed a mostly vacant office building in Chicago’s West Loop, and purchased a senior living rental complex in South Florida for $100 million.
A couple years ago, AEW Capital Management cashed out of an apartment complex in Hollywood. It was 136 apartments on North Formosa Avenue that sold for $48 million. But the company may be betting on Hollywood multifamily again — and it wouldn’t be the only one. The Lighthouse Group recently bought two Hollywood apartment complexes this year: one for about $74 million and another for $54.5 million.
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