The Lowest Cap Rate Of the Year Is…By
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The three property portfolio totals 43 units.
GLENDALE, CA—A Los Angeles-based private investor has purchased a three-property, 43-unit multifamily portfolio in Glendale at a 3.57% cap rate, the lowest cap rate in the Glendale submarket over the last 12 months, from a Burbank-based private trust. The property portfolio sold for $13.5 million or $314,000 per door. The investor plans to implement a value-add strategy and push rents upon completion.
Although there was a low cap rate for the market, the property received ample interest and multiple offers from investors. “The properties were fully marketed. There was a lot of interest,” Albert Shilton, senior managing director with the Charles Dunn Co., tells GlobeSt.com. “Within the first three days, I had 60 or 70 requests for marketing packages. A lot of investors were taken back by the cap rate, but most took the time to analyze the asset and saw that there was a lot of potential. That made the difference. There were nine offers, five of which were local Glendale investors who were reluctant to step up to the price. Then, there were Westside buyers, who, compared to what they were accustomed to when purchasing properties in West Los Angeles and other prime areas, this was a good opportunity.”…
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