NAI Capital’s Sheri Messerlian and Tim Steuernol represented the buyer and the seller in the transaction.
The property, dubbed the Village Apartments, is located at 3650 Newton St.
It has 36 two-story townhome-style units, each of which has two bedrooms and 1.5 bathrooms. It also has a community pool, on-site laundry and garage parking.
The property was built in 1963. The seller had owned the property, which was 91% occupied at the time of the sale, for more than 30 years.
Despite NAI Capital saying the asset was well-maintained, the brokerage added that it was “primed for a modern renovation to bring units to market rent.”
“This was an attractive long-term investment,” Steuernol said in a statement. “At the time of sale, rents at the building were approximately 50% below market, providing the buyer an outstanding opportunity to increase net operating income by renovating the units and bringing rents up to market.”
The multifamily market has seen a lot of investor demand. In the third quarter, there was $78.7 billion worth of multifamily properties to trade hands in the United States, according to data from Newmark Group Inc. This was the most of any quarter on record. Rents grew 5.9% during the quarter, according to Newmark, which expects rent growth to continue.
“Post Covid-19, the multifamily investment market remains strong. The buyer closed on the asset above the asking price after competing with multiple bids from qualified investors. The seller was thrilled to cash out and reposition their funds,” Messerlian said in a statement.
It isn’t the only property to sell recently in Torrance. Earlier this year, El Segundo-based Vivo Investment Group, which converts hotel rooms into apartments, purchased a 108-unit property at 4111 Pacific Coast Highway.
