Two apartment complexes have traded for a combined $87.9 million, with NextGen Properties Group at the center of both transactions.
South Hills Apartments, an 85-unit apartment property in West Covina, sold for $38.3 million, or $450,000 per unit.
“South Hills Apartments is located in one of Greater Los Angeles’ tightest multifamily markets, the San Gabriel Valley, which has had one of the region’s lowest vacancy rates and most limited construction pipelines,” said Kevin Green, executive managing director of Marcus & Millichap’s Institutional Property Advisors division.
Green and Institutional Property Advisors’ Joseph Grabiec and Greg Harris, in conjunction with Marcus & Millichap’s Tyler Leeson, Mathew Kipp and Nick Kazemi, represented seller NextGen Properties Group and procured a 1031-exchange buyer, HFH Ltd.
The sale was a 1031 exchange, which allows the seller to defer capital gains taxes by buying a similar property with the proceeds.
NextGen, with representation from Green, Grabiec and Leeson, rolled the proceeds from the South Hills Apartments sale into the purchase of Alivia Apartments, a 128-unit multifamily property in Whittier, for $49.6 million, or $387,695 per unit.
The acquisition financing was arranged by Marcus & Millichap Capital Corp.
Built in 1966 on 5-plus acres and remodeled in 2019, South Hills Apartments is a gated community with a swimming pool and spa, fitness center and outdoor kitchen with barbecue grills.
South Hills Apartments is just off the San Bernardino Freeway/Interstate 10, near the Eastland Center and Cortez Park. Mt. San Antonio College, Azusa Pacific University and California Polytechnic State University are all within a 10-minute drive, and Metrolink’s Covina and Baldwin Park train stations are nearby.
Green, along with Grabiec and Harris, represented the seller, Fairfield Carmenita LP, and procured buyer NextGen to buy the Alivia Apartments.
Michael Derk, executive managing director at Marcus & Millichap…
Read the full article here
