The properties were owned by the seller for almost three decades.
Berkadia’s Brent Sprenkle represented the seller in the transaction.
“It’s not often that investors have the opportunity to acquire three properties from a very long-term owner, all with slightly different attributes and locations, and all being sold at very attractive prices per unit and per square foot,” Sprenkle said in a statement. “Because of the heavily below market lease rates, the in-place cap rate was sub 4%, but the long-term rental upside is enormous.”
The largest property based on number of units was a 30-unit building at 1234-1240 4th Ave. in Central L.A. The property, which was built in 1928, is three stories tall and has one-bedroom, studio and efficiency units, in addition to three parking spaces.
Another property in the sale was a 21-unit building at 2849 San Marino St. in Koreatown. The property was built in 1923 and has 10 parking spaces.
The last asset consists of two apartment buildings totaling 28 units at 1714 S. Burlington Ave. in Pico-Union. The property has 22 parking spaces in addition to a detached two-car garage.
L.A had a number of large multifamily sales in 2021. Many of the top sales, records show, are workforce housing conversions, which use tax-exempt bond financing to acquire the properties.
Some of the largest sales last year included the 507-unit Altana Apartments in Glendale, which Waterford Property Co. and California Statewide Communities Development Authority purchased for $300 million and the Playa Pacifica and The Gallery in Hermosa Beach, purchased by Prime Residential for $275 million.