Cityview sells Costa Mesa multifamily property for record-setting price

Baker Block Exterior
Cityview announced the sale of Baker Block, a 240-unit multifamily property in Costa Mesa. (Credit Paul Vu)

Cityview, a premier investment management and development firm dedicated to redefining urban living, today announced the sale of Baker Block, a 240-unit multifamily property in Costa Mesa. The apartment community, which completed ground-up construction in 2018, was sold to Baker Block Associates, LP for $113.5 million. At $473,000 per door, Baker Block is one of the highest price-per-unit sales ever recorded for a mid-rise multifamily rental product in Orange County.

“Cityview took great strides to position Baker Block as an alternative to comparable product in the area, creating a unique living environment, connectivity to the local community and an elevated resident experience,” said Sean Burton, CEO of Cityview. “Baker Block exceeded our lease-up expectations and achieved one of the highest per-unit sale prices in the area. After leasing the project we saw significant investor interest in the market, which helped inform our decision to sell.”

Baker Block Associates, LP plans to hold the asset long-term and continue Baker Block’s current operations as a Class A multifamily apartment community. Located at 125 Baker Street East, the apartment complex features studio, one-, two- and three-bedroom units, and a variety of amenities including a resort-style poolside retreat, indoor/outdoor clubroom with full kitchen and wet bar, a two-story IMPACT fitness center with yoga and spin studios, rooftop sky lounge and gaming space, dog park with agility equipment, grab-and-go coffee bar, pet wash and multi-purpose spaces for relaxing, entertaining, events and co-working.

The community has become a local landmark, featuring Orange County’s largest mural created by world-renowned street artist Shepard Fairey, who also designed President Barack Obama’s iconic “Hope” poster during the 2008 election.

“We are very excited about our recent acquisition of Baker Block,” said a representative from Baker Block Associates LP. “We have long been looking to enter the Orange County multifamily submarket and believe our acquisition speaks to how highly we view Costa Mesa and all it has to offer. With a high barrier to entry and burgeoning social scene, Costa Mesa is absolutely somewhere that we wanted to be for the long-term.”

Cityview partnered with Red Oak Investments, Johnstone Moyer, Inc., AO and Inovus Design on the original construction of Baker Block. The 181,155-square-foot community opened to tenants in December 2017.

“We very much enjoyed working with Red Oak and each of our other partners on this development,” said Tony Cardoza, senior vice president and managing director at Cityview.

Baker Block has received several notable industry awards, including PCBC’s Gold Nugget Merit Award for Best Multifamily Community and MultiHousing News’ Excellence Award for Best Mid-Rise New Development and Design. The community was also awarded the 2019 Kingsley Excellence Award for Resident Satisfaction for going above and beyond to ensure residents are satisfied with their living experience.

“It was a pleasure working with Baker Block Associates, LP on the transaction, and we are confident that they will continue Baker Block’s best-in-class service as one of the top multifamily communities in Orange County,” said Burton.

Tom Moran Jr. from Moran & Company represented Cityview in the transaction.

Institutional Property Advisors brokers suburban Seattle multifamily sale

Summit Apartments
Institutional Property Advisors announced the sale of The Summit Apartments, a 96-unit multifamily asset in Redmond, Washington.

Institutional Property Advisors (IPA), a division of Marcus & Millichap, announced today the sale of The Summit Apartments, a 96-unit multifamily asset in Redmond, Washington.

“The Summit is an excellent value-add opportunity located in one of the most sought-after submarkets on the Eastside,” said Philip Assouad, IPA senior managing director. “Major tech employers are expanding nearby, creating strong renter demographics and opportunities for future revenue growth.” Assouad, Giovanni Napoli, Ryan Dinius, and Sidney Warsinske of IPA represented the seller, Coast Equity Partners, and procured the buyer.

Constructed in 1981 on just under four acres, The Summit is minutes from Redmond’s downtown, Redmond Town Center, a mixed-use development and shopping center, and Marymoor Park. Highway 520 and Interstate 405 are within minutes and provide access to Microsoft, Amazon, Google, Facebook, and DigiPen.

Institutional Property Advisors brokers North Los Angeles county multifamily asset sale

The Summit at La Crescenta
Institutional Property Advisors announced the sale of The Summit at La Crescenta, a 92-unit apartment complex in La Crescenta-Montrose, California.

Institutional Property Advisors (IPA), a division of Marcus & Millichap, announced today the sale of The Summit at La Crescenta, a 92-unit apartment complex in La Crescenta-Montrose, California. The property sold for $34,525,000, which equates to $375,272 per unit.

“The Summit at La Crescenta is one of only five buildings greater than 50 units in La Crescenta-Montrose and over the past 20 years, just 44 units have been added as supply is constrained by the lack of available land and the difficulty of aggregating parcels,” said Kevin Green, IPA senior director. “As a result, the area is a largely underserved market, as evidenced by the 1 percent residential vacancy rate.”

Green, Joe Grabiec, IPA senior director, and Greg Harris, IPA executive director, represented the seller, a joint venture between Stockbridge and NNC Apartment Ventures, and procured the buyer, Raintree Partners. “The property has received many interior and common area improvements over the last five years and strategic renovations can further augment the income stream,” added Grabiec.

Built in 1964 on 3.75 acres, The Summit at La Crescenta is adjacent to the Angeles National Forest, approximately five miles from Glendale Community College and about 10 miles from Woodbury University. There are 1.4 million jobs within a 30-minute drive of the community in Burbank, Glendale, Pasadena, and Downtown Los Angeles. “La Crescenta-Montrose’s affluent demographics, such as average annual income of $126,598, low density and highly regarded school system make it one of the most desirable places to live in the Tri-Cities submarket, which also includes Burbank, Glendale, Pasadena, and La Canada-Flintridge,” noted Harris.

“Including Summit at La Crescenta, we have acquired eight assets in the Glendale/La Crescenta submarket for $114 million over the last nine months,” commented Raintree Partners managing director Aaron Hancock. “Our total portfolio in the area now totals 323 units and we intend to add more.”

Institutional Property Advisors brokers suburban Seattle multifamily sale

Summit Apartments
Institutional Property Advisors announced the sale of The Summit Apartments, a 96-unit multifamily asset in Redmond, Washington.

Institutional Property Advisors (IPA), a division of Marcus & Millichap, announced today the sale of The Summit Apartments, a 96-unit multifamily asset in Redmond, Washington.

“The Summit is an excellent value-add opportunity located in one of the most sought-after submarkets on the Eastside,” said Philip Assouad, IPA senior managing director. “Major tech employers are expanding nearby, creating strong renter demographics and opportunities for future revenue growth.” Assouad, Giovanni Napoli, Ryan Dinius, and Sidney Warsinske of IPA represented the seller, Coast Equity Partners, and procured the buyer.

Constructed in 1981 on just under four acres, The Summit is minutes from Redmond’s downtown, Redmond Town Center, a mixed-use development and shopping center, and Marymoor Park. Highway 520 and Interstate 405 are within minutes and provide access to Microsoft, Amazon, Google, Facebook, and DigiPen.

CGI Strategies starts construction on third Koreatown multifamily development

CGI Strategies started construction on a 200-unit apartment community at 837 S. Fedora in the heart of Los Angeles’ Koreatown.

Real estate investment and development firm CGI Strategies has started construction on a 200-unit apartment community at 837 S. Fedora in the heart of Los Angeles’ Koreatown. Fedora, which is being developed at a cost of $50 million, is CGI’s third ground-up multifamily development in the Koreatown neighborhood in the past 36 months.

Fedora is a seven-story concrete and wood building, over two levels of subterranean parking, that will feature a mix of studio, one- and two-bedroom floor plans ranging in size from 622 to 1,000 square feet. Each unit will feature walk in closets, balconies, stone countertops, contemporary lighting fixtures and stainless steel appliances. Ten percent of the units will be dedicated for low-income earners. Amenities will include a fully equipped fitness center, 6,500-square-foot community lounge and clubhouse, exterior courtyard and a 5,400-square-foot rooftop deck.

With Fedora, CGI continues to establish a significant footprint in Koreatown, a vibrant submarket located four miles east of downtown Los Angeles with a proven appeal to the millennial workforce. Having successfully brought to market 182 market-rate and affordable rental units, with an additional 121 units, 6,000 square feet of retail space and 125 hotel rooms in the pipeline, CGI is one of the most active multifamily developers in Koreatown.

The start of construction on Fedora coincides with the completion of the nearby Mariposa, a mixed-use development with 122-unit apartment homes over 4,600 square feet of street level retail space at 269 S. Mariposa Avenue, on the northwest corner of Mariposa and W. 3rd Street. CGI completed its first Koreatown development in 2018. Kodo, a 60-unit mixed-use development near the Wilshire/Vermont Metro Station was sold last month to a local investment firm for $30 million.

Members of the Fedora construction team include: Frymer Construction and KFA Architecture.

Construction is expected to be completed in April 2022.

Institutional Property Advisors brokers North Los Angeles county multifamily asset sale

The Summit at La Crescenta
Institutional Property Advisors announced the sale of The Summit at La Crescenta, a 92-unit apartment complex in La Crescenta-Montrose, California.

Institutional Property Advisors (IPA), a division of Marcus & Millichap, announced today the sale of The Summit at La Crescenta, a 92-unit apartment complex in La Crescenta-Montrose, California. The property sold for $34,525,000, which equates to $375,272 per unit.

“The Summit at La Crescenta is one of only five buildings greater than 50 units in La Crescenta-Montrose and over the past 20 years, just 44 units have been added as supply is constrained by the lack of available land and the difficulty of aggregating parcels,” said Kevin Green, IPA senior director. “As a result, the area is a largely underserved market, as evidenced by the 1 percent residential vacancy rate.”

Green, Joe Grabiec, IPA senior director, and Greg Harris, IPA executive director, represented the seller, a joint venture between Stockbridge and NNC Apartment Ventures, and procured the buyer, Raintree Partners. “The property has received many interior and common area improvements over the last five years and strategic renovations can further augment the income stream,” added Grabiec.

Built in 1964 on 3.75 acres, The Summit at La Crescenta is adjacent to the Angeles National Forest, approximately five miles from Glendale Community College and about 10 miles from Woodbury University. There are 1.4 million jobs within a 30-minute drive of the community in Burbank, Glendale, Pasadena, and Downtown Los Angeles. “La Crescenta-Montrose’s affluent demographics, such as average annual income of $126,598, low density and highly regarded school system make it one of the most desirable places to live in the Tri-Cities submarket, which also includes Burbank, Glendale, Pasadena, and La Canada-Flintridge,” noted Harris.

“Including Summit at La Crescenta, we have acquired eight assets in the Glendale/La Crescenta submarket for $114 million over the last nine months,” commented Raintree Partners managing director Aaron Hancock. “Our total portfolio in the area now totals 323 units and we intend to add more.”

CGI Strategies starts construction on third Koreatown multifamily development

CGI Strategies started construction on a 200-unit apartment community at 837 S. Fedora in the heart of Los Angeles’ Koreatown.

Real estate investment and development firm CGI Strategies has started construction on a 200-unit apartment community at 837 S. Fedora in the heart of Los Angeles’ Koreatown. Fedora, which is being developed at a cost of $50 million, is CGI’s third ground-up multifamily development in the Koreatown neighborhood in the past 36 months.

Fedora is a seven-story concrete and wood building, over two levels of subterranean parking, that will feature a mix of studio, one- and two-bedroom floor plans ranging in size from 622 to 1,000 square feet. Each unit will feature walk in closets, balconies, stone countertops, contemporary lighting fixtures and stainless steel appliances. Ten percent of the units will be dedicated for low-income earners. Amenities will include a fully equipped fitness center, 6,500-square-foot community lounge and clubhouse, exterior courtyard and a 5,400-square-foot rooftop deck.

With Fedora, CGI continues to establish a significant footprint in Koreatown, a vibrant submarket located four miles east of downtown Los Angeles with a proven appeal to the millennial workforce. Having successfully brought to market 182 market-rate and affordable rental units, with an additional 121 units, 6,000 square feet of retail space and 125 hotel rooms in the pipeline, CGI is one of the most active multifamily developers in Koreatown.

The start of construction on Fedora coincides with the completion of the nearby Mariposa, a mixed-use development with 122-unit apartment homes over 4,600 square feet of street level retail space at 269 S. Mariposa Avenue, on the northwest corner of Mariposa and W. 3rd Street. CGI completed its first Koreatown development in 2018. Kodo, a 60-unit mixed-use development near the Wilshire/Vermont Metro Station was sold last month to a local investment firm for $30 million.

Members of the Fedora construction team include: Frymer Construction and KFA Architecture.

Construction is expected to be completed in April 2022.

JLL closes $34.1 million sale of Beaverton apartment community

Terra Murrayhill by Red Studio Inc
JLL closed the $34.1 million sale of Terra Murrayhill, a 137-unit, garden-style apartment community located in Beaverton, Oregon.

JLL announced today that it has closed the $34.1 million sale of Terra Murrayhill, a 137-unit, garden-style apartment community located in Beaverton, Oregon.

JLL marketed the property on behalf of the seller, a West Coast-based investor, and procured the buyer, DB Capital Management.

Terra Murrayhill is located near major tech employers within what is known locally as the “Silicon Forest.”

The property, which sits on approximately nine acres at 14305 SW Sexton Mountain Drive, is also close to the Beaverton Transit Center providing residents with connectivity to downtown Portland, Hillsboro and the Portland International Airport. The community comprises 15 residential buildings that house a mix of one-, two- and three-bedroom units averaging 891 square feet. Originally constructed in 1985, Terra Murrayhill has recently undergone $3 million in renovations and capital improvements. In addition to the newly upgraded clubhouse, common area amenities include an outdoor pool, hot tub, grilling area, fitness center, business center, dog park, detached garages and direct hiking trail access.

The JLL Capital Markets team representing the seller was led by Senior Managing Director Ira Virden, an Oregon-licensed real estate salesperson, and Senior Director Carrie Kahn. The DB Capital Management team was led by Vice President—Northwest Region Daniel Terranova, who brings a decade of experience in real estate with a specialty in acquisitions and asset management.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients—whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

Deal secured by Holliday Fenoglio Fowler LP (“HFF”) prior to being acquired by JLL on July 1, 2019. Co-brokerage services provided by Jones Lang LaSalle Americas, Inc.

Stepp Commercial completes $10.7 million sale of Gramercy Hollywood a 28-unit apartment property in Los Angeles

Gramercy Hollywood
Stepp Commercial completed the $10.7 million sale of Gramercy Hollywood, a 28-unit apartment property located at 1836 N. Gramercy Place in Hollywood.  

Stepp Commercial, a leading multifamily brokerage firm in the Los Angeles market, has completed the $10.7 million sale of Gramercy Hollywood, a 28-unit apartment property located at 1836 N. Gramercy Place in one of the most coveted neighborhoods of Hollywood.

Executive Vice President Darin Beebower with Stepp Commercial represented the seller, a Los Angeles-based private investor, and also procured the buyer, an investment firm from Los Angeles. The closing cap rate was 4.3 percent, the price per unit was $383,143, and the price per square foot was $545.

The property recently underwent a complete transformation into a best-in-class asset featuring a modern style of living with luxury amenities. Originally built in 1964, the two-story property includes five two-bedroom units, 17 one-bedroom units and 6 studios. Twenty-one units were fully renovated and include stainless steel appliances (including microwaves and dishwashers), custom designer cabinetry, quartz countertops, tiled backsplashes, wood style flooring, recessed lighting, central HVAC, custom-tiled baths and in-unit washers and dryers.

“Led by media, tech and entertainment firms such as Netflix, Hollywood has become the fastest growing employment market in Southern California. As testimony to this economic momentum and its impact on housing demand, Gramercy Hollywood sold for the highest price per square foot of any renovated property over 15 units ever in Hollywood,” said Beebower.

Gramercy Hollywood is surrounded by Hollywood’s most famous landmarks, including the Hollywood Bowl, ArcLight Cinemas, Pantages Theatre, Fonda Theater, El Capitan Theatre, Dolby Theatre, Roosevelt Hotel, and the Hollywood Walk of Fame. Hollywood’s central location, expanded transit and access options, world class entertainment and nightlife, and the expansion of companies migrating to the area all serve to drive additional demand for new developments and renovation projects. Hollywood has been attracting many young professionals seeking a walkable, urban environment near entertainment employment centers, nightlife/recreation, restaurants and public transportation.

JLL closes $34.1 million sale of Beaverton apartment community

Terra Murrayhill by Red Studio Inc
JLL closed the $34.1 million sale of Terra Murrayhill, a 137-unit, garden-style apartment community located in Beaverton, Oregon.

JLL announced today that it has closed the $34.1 million sale of Terra Murrayhill, a 137-unit, garden-style apartment community located in Beaverton, Oregon.

JLL marketed the property on behalf of the seller, a West Coast-based investor, and procured the buyer, DB Capital Management.

Terra Murrayhill is located near major tech employers within what is known locally as the “Silicon Forest.”

The property, which sits on approximately nine acres at 14305 SW Sexton Mountain Drive, is also close to the Beaverton Transit Center providing residents with connectivity to downtown Portland, Hillsboro and the Portland International Airport. The community comprises 15 residential buildings that house a mix of one-, two- and three-bedroom units averaging 891 square feet. Originally constructed in 1985, Terra Murrayhill has recently undergone $3 million in renovations and capital improvements. In addition to the newly upgraded clubhouse, common area amenities include an outdoor pool, hot tub, grilling area, fitness center, business center, dog park, detached garages and direct hiking trail access.

The JLL Capital Markets team representing the seller was led by Senior Managing Director Ira Virden, an Oregon-licensed real estate salesperson, and Senior Director Carrie Kahn. The DB Capital Management team was led by Vice President—Northwest Region Daniel Terranova, who brings a decade of experience in real estate with a specialty in acquisitions and asset management.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients—whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

Deal secured by Holliday Fenoglio Fowler LP (“HFF”) prior to being acquired by JLL on July 1, 2019. Co-brokerage services provided by Jones Lang LaSalle Americas, Inc.