L.A-based multifamily investment company Monem Corp. had a busy December. Monem bought three multifamily properties during the month two in Koreatown and another in Venice for a total of about $5 million. Two of the buildings were in poor shape, which was attractive to Monem because the company focuses on acquiring distressed assets.
"Every year December is an interesting month. A lot of people who are in trouble need to do things in December," said Danny Monempour, president of Monem, which owns about 30 apartment buildings in Los Angeles.
With the drastic downturn in the local real estate economy, Monempour expects to make many acquisitions this year.
"There are amazing opportunities coming and there will be a lot more," he said.
In one of the Koreatown deals, Monem bought a 15-unit apartment building at 843 S. Ardmore Ave. for $2.25 million. The seller was Ardmore Investors LLC, a local group. The 1989 building has six two-bedroom and nine one-bedroom apartments. Monem has already started a $225,000 renovation and will add hardwood floors, stainless-steel kitchen appliances and new door locks, among other features. Monempour said 14 of the 15 units were occupied at the time of sale.
In the other Koreatown deal, Monem and an unnamed partner bought a 14-unit apartment property at 737 S. Burlington Ave. for about $950,000. The deal was with 737 S. Burlington LLC, a family of real estate investors.
In the final transaction, Monem picked up a nondistressed, six-unit apartment property in Venice for $1.79 million. The seller was the Hinton Family Trust. The building at 14 Ozone Ave. in Venice has one studio, two one-bedroom units and three two-story loft units. Monem will spend about $15,000 per unit in upgrades.
Dan Baird of Bridgepointe Equity Partners represented both sides of the Ardmore deal. Josh Tomaszewski of JRM Properties represented Monem in the Burlington deal and the seller was represented by Chaya Goldenberg of Nelson Shelton & Associates. Judd Weiss of Weiss Investment represented both sides of the Ozone deal.
L.A.-based Mesa West Capital LLC, a private real estate lender, has provided developer and investor Magellan Group Inc. with a $26.5 million loan so that Magellan could pay off a previous loan it took out with an unnamed investment bank.
L.A.-based industrial developer Magellan was able to pay off a $45 million loan on its 500,000-square-foot Grace Place property in the City of Commerce at a discount, or for "66 cents on the dollar," according to Jeff Friedman, co-chief executive of Mesa West.
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