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Wednesday, Sep 27, 2023

Hawthorne Apartments Sell for $27M

The four-property Hawthorne Portfolio, a collection of multifamily properties in Hawthorne, has sold for $26.5 million.
The properties have a combined 91 units and were built in the 1980s. The portfolio had been owned by the same partnership since the early 1990s.

Marcus & Millichap’s Jonathan Weir represented the unnamed local buyer and seller in the transaction; the seller has diversified into other asset types and geographic areas.
“The portfolio was in huge demand by many local investors, as most midsize buyers love this market and especially like newer-vintage buildings,” Weir said in a statement.

It’s been a busy year for multifamily sales. During the first quarter, $3.6 billion of multifamily buildings traded hands in the greater L.A. area, according to data from brokerage CBRE Group Inc. In the fourth quarter, $7.7 billion worth of multifamily properties traded hands in the area, compared with $4.5 billion in the previous quarter, $3.3 billion the quarter before that, and $3 billion the quarter before that.

And in the last four quarters sales increased a whopping 123% over the same time period a year prior, CBRE found.
During the first quarter of the year, rental rates in the South Bay hit $2,835, up from $2,792 the previous quarter and $2,493 the previous year, according to CBRE data. The county average for rent during the first quarter, meanwhile, was $2,022, data shows.

Hawthorne has seen interest from other buyers as well. In March, it was announced that a fully entitled development site with plans for more than 260 units to be built sold for an undisclosed sum. It is located at 12850 Crenshaw Blvd.
A joint venture between Cityview and Stockbridge Capital Group purchased the property — dubbed South Bay X — from The Dinerstein Cos.

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