Waterstone, A Milestone Transaction

 Waterstone, a 354-unit apartment building in Chatsworth, has sold for nearly $102 million, or $288,135 per unit.  

Lincoln Avenue Capital, an acquirer and developer of affordable and workforce housing, purchased the property.  

Located at 9901 Lurline Ave., Waterstone is the largest multifamily property in the submarket, according to CBRE Group.   

Built in 1971, the property has undergone extensive renovation and features an outdoor pool and gym, clubhouse, several courtyards, outdoor grilling stations and dog park.  

CBRE’s Dean Zander and Stewart Weston represented the seller, Nuveen Real Estate.  

“The buyer recognized the inherent value in providing workforce housing in a neighborhood where there is a clear need,” Zander said in a statement. “Waterstone represents the largest sale – both in sales price and number of units – of pre-1980s built multifamily properties in the San Fernando Valley over the last 24 months.”  

Weston added: “With the increasing urgency to provide affordable housing in Southern California, Waterstone at Chatsworth will continue to provide stability for working families and qualifies as naturally occurring affordable housing in a market that has seen unparalleled rent growth.”  

The Chatsworth submarket has seen an average annual rental growth of 5.1 percent since 2010, according to CBRE research.  

By way of comparison, several weeks ago, a two-property multifamily portfolio totaling 504 units in Simi Valley closed for $190 million, or roughly $377,000 per unit.