Lee & Associates-LA North/Ventura Transacts Three-Building Multifamily Sale for $13.4MM
Transaction was part of long term strategy to build real estate portfolio
SHERMAN OAKS, CA – Feb. 2, 2015—A private investor has acquired a portfolio of three multifamily assets totaling 85 units in Burbank, North Hollywood and Sun Valley, according to Warren Berzack, a principal of Lee & Associates-LA North/Ventura, http://www.lee-associates.com, who represented the buyer and sellers in the transaction with Lee Principals Stephen Geiger, Jim Fisher, and Mike Smith.
Combined consideration for the three properties is $13,400,000.
“The acquisition was part of a long term strategy,” said Berzack, who heads Berzack Property Investment Advisors http://www.berzackadvisors.com, a multifamily specialty group of Lee. “The buyer used the proceeds of two recent sales to increase and upgrade his portfolio. We assisted him in divesting those two assets and then identified and secured these three off-market opportunities.”
Berzack, who has worked with the buyer for a number of years, in December transacted on his behalf the sale of a 12-unit property at 7642 Vineland Ave. in Sun Valley and the sale of a 23-unit multifamily asset at 6859 Laurel Canyon Blvd. in North Hollywood for a combined $4,695,000. The investor had acquired the North Hollywood asset two years earlier for $1,950,000. The Sun Valley asset had been a longer hold for which he had paid significantly below the price at which it just sold.
“We knew several years back that the end game would be to trade up into larger, more valuable assets, and we planned for it,” said Berzack. “The buyer was able to go from 35 units in tertiary locations to 85 units in primary and secondary locations and to higher quality, well-maintained assets.”
Included in the acquisition was Strohm Apartments at 5636 Strohm Ave. in North Hollywood. The property, built in 1990, consists of 34 units including 20, one-bedroom, one-bath apartments and 14, two-bedroom, two bath apartments. It is located adjacent to Burbank between Cahuenga Boulevard and North Hollywood Way. The 34-unit property sold for $5,250,000.
Ratner Apartments, at 10930 Ratner St. in Sun Valley, consists of 30 units including 18, one-bedroom, one bath apartments; eight, two-bedroom, two-bath apartments and four, three bedroom, 2-bath apartments. The property, built in 1994, sold for $4,550,000.
The third asset, Hollywood Way Apartments located at 7601 N. Hollywood Way in Burbank, consists of 21 units with one single, four, one-bedroom, one bath units and 16, two-bedroom, one bath units. The property, close to Bob Hope Airport, was sold for $3,600,000.