Van Nuys-based Sikand Properties has sold an eight-property portfolio of apartment buildings with 644 total units in Hollywood, Pasadena and elsewhere in Los Angeles County for nearly $162 million.
The portfolio was comprised of the following properties:
• Tamarind Terrace, a 112-unit building at 1950 Tamarind Ave. in Hollywood purchased by Raintree Partners of Laguna Niguel
• Vista del Madre Apartments, a 28-unit building at 2405-2415 Mohawk St. in Pasadena, purchased by Harmony Court Investment of Palos Verdes Estates
• Oaktree Apartments, a 148-unit property at 22900 Oak Ridge Drive in Santa Clarita, bought by Oak Ridge Drive Fee Owner, a Westside-based limited liability company
• Stillmore Apartments, 130 units located at 19306, 19326, 19400 and 19436 Stillmore St. in Canyon Country, purchased by Wedgewood Inc. of Foothill Ranch
• Regency Apartments, 88 units at 7400 Sepulveda Blvd in Van Nuys
• Foothill Village Apartments, a 60-unit complex at 14165-14175 Foothill Blvd in Sylmar
• Sylvan Apartments, 43 units located at 14140-14142 Sylvan St. in Van Nuys
• Woodley Court, 35 units at 6700 Woodley Ave. in Van Nuys
LA Apartments, a Palms-based private investor, purchased the last four properties on the list, sources close to the deal said.
Ronald Harris, Greg Harris, Kevin Green and Joe Grabiec of Institutional Property Advisors as well as Bryan Schellinger of Marcus & Millichap were the brokers on the deal.
The buyer profiles ranged from institutional discretionary funds, to regional syndicators, to high-net-worth private investors, according to Ronald Harris.
The marketing period for the portfolio took about six months and the last four properties closed on Monday, according to sources close to the deal. Of the eight properties, only the Hollywood location was subject to rent control laws.
“The seller had maintained the properties in good condition over their 30-plus years of ownership,” said Ronald Harris in a statement. “There was tremendous interest in these buildings, which attracted over 130 offers, because of the ‘value-add component’ of each property.”
The cap rates on the properties ranged from roughly 3.5 percent to 4.5 percent, according to Greg Harris, but are expected to rise to 5 percent or 6 percent.
“It is rare to find a sizeable non-rent controlled value-add portfolio where the upside can be realized immediately,” said Kevin Green in a statement.
Real estate reporter Ciaran McEvoy can be reached at firstname.lastname@example.org or (323) 556-8337.
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