LOS ANGELES--(BUSINESS WIRE)--Institutional Property Advisors (IPA), a multifamily brokerage division of Marcus & Millichap serving the needs of institutional and major private investors, has arranged the sale of Crenshaw Village, a 669-unit apartment portfolio located in Baldwin Hills. The $60 million sales price equates to $89,700 per unit.
IPA executive vice president of investments Ron Harris, IPA associate director Paul Darrow and IPA associate Michael DiSimone represented the seller, a private investor. The buyers are also private investors: Sean Baker and Gary Simons of Calabasas, Calif.-based Upside Investments Inc.
“The sheer size and scope of this asset—65 buildings on 40 separate parcels with 652,750 gross square feet situated on 25 acres—make it the largest assemblage in the area,” says Harris. “The property’s tremendous potential is further enhanced by the large amount of public and private investment taking place in the immediate area.”
“The number of offers written by a wide variety of private and institutional investors testifies to the amount of interest this property generated,” adds Harris.
“Constructed in 1948, Crenshaw Village has yet to undergo a major upgrade,” adds Darrow. “The property is perfectly positioned to reap the benefits of future development in the area such as the planned Kaiser Permanente medical office building and the light rail stop that will provide transportation to Los Angeles International Airport.”
“Crenshaw Village was owned by the same family for more than 30 years,” says DiSimone. “Although it was a well maintained ‘best-of-class property,’ the buyer saw an opportunity to create value enhancement through a renovation program.”
David Pascale of George Smith Partners Inc. arranged financing for the sale.
“From a financing standpoint, this transaction was a great success,” says Steve Bram, principal and managing director at George Smith Partners Inc. “Working closely with our Fannie Mae correspondent, we secured two loans totaling $42,650,000, both priced at Fannie Mae’s best rate.”
“This was one of the most complicated deals we have worked on due to the five separate reverse exchanges, and yet we were still successful in closing the loans in a record six weeks from application,” adds Bram. “In addition, the buildings are older than Fannie Mae’s typical product type, yet we were still able to maintain a 30-year amortization.”
The property is located less than one mile from the Los Angeles County Metro Rail’s Farmdale station and less than 1.5 miles from the Expo/Crenshaw station, both of which provide easy access to many of Los Angeles’s key employment areas.
With a network of senior-level investment advisors located throughout the United States, Institutional Property Advisors (IPA) is qualified to meet the needs of institutional and major private investors. IPA’s combination of real estate investment and capital markets expertise, industry-leading technology, superior support services and acclaimed research offer customized solutions for the acquisition and disposition of institutional multifamily properties and portfolios.