Cityview has purchased Candela, a 112-unit apartment complex at the base of Hollywood Hills, for $35.5 million in what the developer is calling a value-add opportunity.
The three- and four-story multifamily project in the Franklin Village neighborhood of Los Angeles features a mix of one- and two-bedroom floorplans, as well as easy job access. It is within walking distance of many entertainment venues, such as Netflix, NBCUniversal, Warner Bros. and Paramount all nearby.
“Candela was a prime opportunity to acquire a well-located, highly amenitized asset significantly below replacement cost, making it an ideal fit for our value-add strategy,” Sean Burton, chief executive of Cityview, said in a statement. “With its supply constrained location and 96% current occupancy, we believe Candela will continue to experience high demand as one of the premier boutique luxury communities in the submarket.”
Originally built in 1974, Candela has been refurbished over the past six years, including upgraded amenity spaces and partial unit renovations. According to a statement put forth by Cityview, the Century City-based developer will undergo a comprehensive unit upgrade program on the remaining unrenovated units and implement a series of operational efficiencies and improvements to elevate the resident experience.
Once complete, upgraded building amenities will include a coworking lounge, a pool and spa, a sauna, outdoor barbecues, a fitness center, a community room, a dog spa, and package locker system. Renovated units will feature stainless steel appliances, stone countertops, new cabinetry, modern lighting and plumbing fixtures, oversized windows, dishwashers, vinyl plank flooring, and more.
Marcus & Millichap’s Institutional Property Advisors represented the seller, Raintree Partners, and procured Cityview, the buyer, in the sale. Westhome, an affiliate of Cityview, will serve as its property manager.
It is one of only two more-than-100-unit multifamily assets located north of Franklin Avenue amongst the Hollywood Hills.
“Prior ownership invested significantly in the property to transform Candela into one of the submarket’s premier boutique luxury apartment buildings,” Kevin Green, IPA’s executive managing director of investments, said in a statement.
“New ownership will have the opportunity to focus almost exclusively on high return interior improvements to the unrenovated units and follow a proven renovation plan that has yielded significant premiums,” Joseph Grabiec, IPA’s executive director, added.
