Since announcing plans to refocus on the Southern California market in 2022, Concord Capital Partners struck its first local deals, acquiring five multifamily properties in Koreatown and Hollywood for a combined total of $79 million.
The Beverly Hills-based real estate firm pivoted to the Texas market in 2014 after observing difficulties scaling in the L.A. market, Concord Founder and Chief Executive Reuben Robin told the Business Journal in a previous interview.
The tides, however, turned. “We decided we wanted to refocus the energy and the priority right in our backyard,” he said in the 2022 interview.
Concord’s new assets, which were purchased with a $60.5 million senior loan and about $30 million in equity, include one Hollywood property, three Koreatown properties and one Westlake property which borders Koreatown.
The Fontenoy in Hollywood is a 51-unit complex located at 1811 Whitley Ave. The Koreatown multifamily complexes include The Langham, a 181-unit building at 715 Normandie Ave.; The Sir Francis Drake, a 61-unit property at 841 Serrano Ave.; and The Piccadilly, a 74-unit community at 682 Irolo St.
Kidder Mathews represented the seller of these four properties.
Lastly in Westlake is Park Wilshire, a 170-unit complex located at 2424 Wilshire Blvd. Colliers represented the previous owner on this deal.
Maintaining historic feel
Each property was first built in the late 1920s.
“We were attracted to these properties because of their favorable pricing relative to historical sales, replacement costs and what we view as the intrinsic value of the assets,” Robin said in a statement. “The properties have seen strong Class A renter demographics across nearly a full century of market cycles.”
Concord plans to implement some upgrades to each property while keeping intact the properties’ historical feel. The properties all feature grand lobbies, detailed facades and courtyards.
Jonathan Fhima, Concord chief investment officer and managing principal, pointed out the firm’s existing portfolio comprising thousands of units near these new additions.
“We expect these properties to integrate seamlessly into our local portfolio,” he said in a statement.
Currently, Concord is looking for multifamily acquisition opportunities in areas facing housing supply constraints, according to a press release.
“Los Angeles is one of the most difficult cities in which to build scale, given the relatively small size of most buildings,” Fhima said. “We’ve successfully assembled 537 units with significant value-add potential across five of L.A.’s most historically significant properties.”
