Virginia-based Harbor Group International has taken a $3.25 million stake in a 60-unit multifamily property in West Hollywood, which was purchased by an affiliate of Concord Capital Partners Inc. for $17 million.
The investment, announced June 5, comes shortly after Harbor Group opened an office in Los Angeles last year — part of the company’s larger strategy in the region.
“It shows the interest we have in the L.A. market,” said Richard Litton Jr., Harbor Group’s president.
Litton said Harbor plans to continue to make loans in the region as it works to grow its West Coast presence, focusing on L.A. apartment buildings where “the renter dynamics are so strong.”
He said Harbor was also interested in multitenant office buildings with stabilized rents and longer leases. The company is less interested in retail and hotel properties, he said.
Bell Diversified Development Inc. sold the West Hollywood property, dubbed Casa Real. Marcus & Millichap Inc.’s Richard Ringer and Jeff Benson represented the buyer and the seller in the transaction.
At the time of the sale, the Casa Real was 87% leased, according to CoStar Group Inc.
Ringer said the seller had owned the property for more than 30 years. “There are not a lot of apartment buildings that are 50-plus units in West Hollywood,” he said. “To get 60-plus units in one shot is a rarity.”
Benson called the location, at 1354 N. Harper Ave., “A-plus.”
“Harper in West Hollywood is one of the most desirable streets for a property owner,” he added.
Harbor Group tends to hold onto properties for five years or less, making renovations and raising rents before selling. Litton said he has to consider rising construction costs when determining what properties to invest in and how much to pay.
“It’s a terrific location,” he said, referring to Casa Real.
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