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Sunday, Aug 14, 2022

2022 Commercial Real Estate Awards: Best Multi-Family Deal of the Year

Vital Statistics
Property Address: DTLA Portfolio
Square Footage: 952,708
Deal Value: $402 million

Gabriel Guerrero and Justin Chu of KW Commercial achieved this remarkable $402 million closing. The DTLA portfolio of five luxury condominium buildings converted from former office buildings is a unique and dynamic transaction. Comprising of 1,038 units of multi-family, this deal took place under difficult circumstances given the T-12 financials under COVID issues, back rent owed from the tenants, and the multitude of issues that faced the area during the past twelve months.
Guerrero and Chu skillfully crafted pro forma financials to show what the properties could be versus how they were currently performing.
This transaction is an important one for Downtown Los Angeles and the surrounding area. It keeps 1,038 units that would otherwise be condominiums in the rental capacity. This adds to the vibrancy of Downtown Los Angeles as a great rental market. The rents in this property are about 20% below market which is a credit to the seller who provided great housing at an affordable rent. The property had to be presented with pro forma numbers and the new owners understood how great the property could be in the near future. The new owners will upgrade the amenities provided in each of the five properties to further enhance the tenant experience.


Vital Statistics
Property Address: Hermosa Beach Portfolio (Playa Pacifica, 415 Herondo St , Hermosa Beach; The Gallery, 414 2nd St, Hermosa Beach)
Square Footage: 285 units + 169 Units
Deal Value: $275 million

The portfolio purchase gives the buyer a sizable footprint in a coastal location, a compelling value-add opportunity and the ability to operate the properties as a single entity. The average annual household income in Hermosa Beach is over $190,000 and more than 55% of the population lives in renter-occupied housing, which creates compelling demand for apartment homes, and ultimately brought a great deal of attention and interest to these properties. The sale represents the acquisition of 24% of the entire apartment stock in Hermosa Beach and nearly 70% of the like-kind apartment stock in Hermosa Beach and Manhattan Beach.


Vital Statistics
Property Address: Lumina Hollywood, 1522 N. Gordon St., Los Angeles
Square Footage: 299 units
Deal Value: $195 million

In what was one of largest urban transactions in Los Angeles in 2021, Cushman & Wakefield sold Lumina Hollywood for $195 million. A 22-story multifamily high-rise comprised of 299 residences and 50,000 square feet of self-contained creative office space; the property is located at the global center of content media. Opened in 2020, Lumina offers a unique resident experience that includes urban, loft-style interiors with exposed concrete columns and ceilings, floor-to-ceiling windows, unobstructed views, and expansive open space.


Return to the 2022 Commercial Real Estate Awards Recap page


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