A 596-unit, 16-parcel multifamily portfolio in the San Fernando Valley sold for $85 million, making it the largest multifamily transaction in San Fernando Valley last year and one of the largest multifamily portfolio sales in the county in the same time period.
Marcus & Millichap Inc. represented the sellers, Heitman, Invesco and ETHOS Real Estate and the buyer, Material Comforts Inc., in the transaction. The sellers were represented by Tony Azzi, while the buyer was procured by Rabbie Banafsheha, Kristen Sullivan and Arteen Zahiri.
The portfolio generated 28 offers. Banafsheha said “a competitive ‘best and final’ process required all offers to close before the end of the year without contingencies, demonstrating how strategic execution and the collaboration of all parties involved can result in significant accomplishments within the industry.”
“The transaction showcases the resilience and strategic expertise required to close deals in today’s challenging market,” Azzi said in a statement. “The sale also stands out for its scale and the innovative incorporation of a nonprofit partnership with National Community Renaissance, which delivered substantial financial benefits for the stakeholders and contributes to the expansion of affordable housing in Los Angeles.”
At least 50% of the residents at the properties will earn under 80% of the Area Median Income, which will qualify the owner for a property tax abatement.
“This approach not only delivered substantial financial benefits but also addressed critical community needs, such as affordable housing,” Azzi said in a statement. “By leveraging creative deal structures, this transaction serves as a model for future collaborations between the public and private sectors, demonstrating how high-value transactions can succeed in challenging markets.”
“This acquisition underscores the importance of persistence and partnership in today’s market,” Yaacov Brenenson, president of Material Comforts, added. “While many are moving investments outside of California, we saw this as an opportunity to make a long-term investment in the future of Los Angeles. I want to thank our agents for their attention to detail during the process from start to finish. I was happy with their diligence on a transaction as complicated as this one.”
