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Thursday, Mar 28, 2024

L.A. Investor Snaps Up Reseda Apartments

A 138-unit apartment complex in Reseda has been acquired for $14.5 million, the highest sales price for a multifamily building in the community since 2006. Villa La Paloma, at 7722 Reseda Blvd., was on the market just 30 days, received multiple offers and sold for its asking price, said Jeff Louks, senior vice president at the Encino office of Marcus & Millichap. Louks, who represented the seller, said the 92,000-square-foot building, given its proximity to Cal State Northridge, was an attractive property. It has a number of smaller units that are rented to students, with the leases turning over quickly. “It’s a nice unit mix. There are a lot of junior one bedrooms, so there tends to be more turnover, which is conducive to keeping it close to market rate,” he said. “It’s not all students on the property, but there are a lot.” The garden-style building, which has a swimming pool, Jacuzzi and recreation room, was 95 percent occupied. It has 114 junior one-bedroom, one-bathroom apartments; 21 one-bedroom, one-bathroom units and just three two-bedroom, two-bathroom units. Rents run from $798 to $1,148. The 2.5-acre property was acquired by L.A. investor PCS Corp. from Blue Jay Group of West Hollywood, according to CoStar Group Inc., a Washington D.C.-based real estate data provider. Louks said the new owner would most likely make some upgrades to the building, constructed in 1978. “It’s in pretty good shape, but there are some things that I think the new owner is planning on doing. It just needs an update,” he said. Gary Fox of Miller & Desatnik Realty Corp. represented the buyer. Gym Expansion Equinox Fitness is expanding into the Westlake Village market with a 36,392-square-foot gym lease. The company, which has area locations in Woodland Hills and Encino, will open its two-story facility at Lakeview Corporate Center later this year. Lee Black, a principal at the Los Angeles office of Cassidy Turley, said the lease also will make the commercial property owned by Irvine real estate investment company LBA Realty LLC more attractive to office tenants. The property is just 56 percent occupied, according to CoStar, with tenants that include the headquarters of semiconductor manufacturer Inphi Corp. and navigation equipment maker General Dynamics Advanced Information Systems. “Equinox adds a unique element that differentiates the property and enhances the appeal to office tenants,” said Black, who represented the owner, in a statement. Equinox signed a 20-year lease on the space. Financial terms were not disclosed, but rents in the building average $28.20 a square foot, according to CoStar. Equinox often looks to open in office parks, catering to professionals who are looking to go to the gym before or after work. Its Woodland Hills location is in the Warner Center Towers complex, and its Encino gym is in the Hudson First Financial Plaza on Ventura Boulevard. The club operates 62 upscale gyms in New York, Chicago, Los Angeles, San Francisco, Miami, Boston, Dallas and Washington D.C. Jeff Pion, of CBRE Group Inc., represented Equinox and Jared Smits, a vice president at Cassidy Turley, also represented LBA. Trophy Property Sale A trophy office building in Glendale sold this month for $96 million, or $228 a square foot, making it the highest price paid for a Class A office property in the city this year. The 500 N. Brand Blvd. property was acquired by Dallas firm Granite Properties Inc. from an affiliate of CBRE Group Inc. The 422,500-square-foot building was constructed in 1990, and is 83 percent leased. Tenants include workers compensation insurance companies Employee Holdings Inc. and State Farm Insurance, and construction materials company Vulcan Materials Co. Granite has said that it plans to continue acquisitions in Southern California, a market it entered just last year with the purchase of the 386,000-square-foot Orange City Square building in Orange. The Glendale acquisition is its second in the state. Russell Ingrum, Sean Sullivan, Kevin Shannon and Tom Bohlinger from CBRE represented the seller. Granite was represented in-house by Paul Bennett and Tom Miller. Staff reporter Kelly Goff can be reached at [email protected] or (818) 316-3135.

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