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Thursday, Dec 7, 2023

Multifamily Portfolio Fetches $23 Million

Culver City-based Goldrich Kest has sold two multifamily assets in Los Angeles County for a combined $23.3 million.

The properties were purchased by Westwood-based Xenon Investment Corp.

Berkadia’s Vince Norris, Brent Sprenkle and Eric Norris represented the seller in the transaction.

Berkadia is a joint venture of Berkshire Hathaway Inc. and Jefferies Financial Group Inc.

The properties involved in the sale were the Lindley Manor, a 50-unit property at 5405 Lindley Ave. in Tarzana and Casa Serrano, a 54-unit property at 245 S. Serrano Ave. in Koreatown.

It is the first time either property sold since being developed in the 1970s.

Lindley Manor has a residential lounge and fitness center. Casa Serrano has a pool, grilling stations and a sauna.

“Both properties saw a high level of interest and received multiple offers, but ultimately, a single buyer purchased both assets as a portfolio,” Norris said in a statement. “The properties offered an excellent value-add opportunity as the seller had recently completed community upgrades, but only minor upgrades to the interiors. The buyer is planning extensive renovations to the unit interiors.”

Goldrich Kest named Mike Drandell as the company’s new chief executive in February 2019. He was previously the company’s chief operating officer. Before being named CEO, Drandell shared CEO duties with Carole Glodney.

Goldrich Kest’s multifamily housing portfolio is primarily in Southern California, San Francisco and San Jose.

Multifamily housing assets are in high demand in L.A. Sales volume for the asset class grew 350% over the last decade to $9.5 billion from $2.1 billion, according to data from CBRE Group Inc. And over the last five years, multifamily housing provided a 9.2% return on investment, according to CBRE.

Koreatown has been a big area for multifamily development and sales. Last year alone, Cityview sold an equity stake in the 346-unit The Pearl on Wilshire that valued the property at $171 million; Equity Residential purchased the Next on Sixth apartment building for $189 million; Alhambra Place Partnership purchased the 60-unit Kodo for $29.25 million; and the 142-unit Sheraton Town House Apartments sold for $16.4 million.

And Koretaown-based developer Jamison has more than 1,000 units in development in the area.

Hannah Madans Welk
Hannah Madans Welk
Hannah Madans Welk is a managing editor at the Los Angeles Business Journal and the San Fernando Valley Business Journal. She previously covered real estate for the Los Angeles Business Journal. She has done work with publications including The Orange County Register, The Real Deal and doityourself.com.

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