StarPoint Properties LLC, a Beverly Hills-based real estate investment firm, and Praedium Group LLC, a New York City-based real estate investor, are joining to purchase a four-property apartment portfolio that includes complexes in Koreatown and Winnetka.
There are 353 units in the $50.1 million deal. The seller was real estate investor Jeff Greene. The two parties brokered a similar deal for eight properties in September 2006.
The deal comprises apartment complexes at 249 and 269 S. LaFayette Park Place in Koreatown, 700 S. Berendo St. in Koreatown and 7500 Mason Ave. in Winnetka. The purchase price breaks down to $141,926 per unit.
Ron Harris of Marcus & Millichap Real Estate Investment Services Inc. said that the sale of the two, four-story buildings on LaFayette Park Place totaling 268 units closed July 11 in timely fashion.
"It closed before there was a meltdown in the capital markets. Combine that with the fact that the condo market has either softened considerably or in some areas has disappeared," said Harris, who brokered both sides of the deal for the two buildings. "(But) the apartment market will remain strong and viable and is considered to be far less risky and at this point and more profitable."
Despite Greene's sale of 12 apartment buildings in the last year, he is not exiting the market, said Darin Beebower of Madison Partners, who also represented both sides of the LaFayette Park Place transaction and represented both sides in the sale of the other two buildings. "It's more kind of a trimming of the portfolio than an exit of the market place," he said.
Beebower said that Koreatown has remained a hot market for apartment investors.
"Koreatown continues to be an area where there is significant rent growth and a tremendous potential for repositioning of assets," he said.
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