A 120-unit luxury apartment complex in Encino has sold to a private investor for $44 million in a yet another deal illustrating the “frothy” nature of the multifamily market this year.
Developer IMT Capital, of Sherman Oaks, sold the 5501 Newcastle Ave. complex in an off-market transaction to an undisclosed individual investor – a price that equates to $367,000 a unit, according to real estate data service CoStar Group.
Jim Fisher, managing director at Lee & Associates-LA North/Ventura office, said IMT did not actively market the property. Instead, the buyer approached the brokerage with an offer, looking to leverage favorable conditions and trade up using a 1031 exchange for the property.
“This is (the buyer’s) second foray into the Valley – he bought a smaller building in Studio City earlier this year – and he liked the location south of the freeway,” said Fisher, who represented the seller and called the market "frothy."
The IMT Encino complex, completed by the developer in 2010, features a fitness center, business center, pool and spa, and subterranean parking. Fisher said the buyer considers the complex a trophy asset that he will hold long-term.
Lee Principal Mike Smith also represented IMT in the deal, while Cory Stehr, a Lee associate, represented the buyer.