Kevin Mulhern, Dixie Hall, Rachel Parsons and Tyler Anderson
Four properties in four counties, including Las Flores at 7039 Charmant Drive, La Jolla
Four properties totaling 820 units
Total consideration: $169 million
About the property:
Greystar Real Estate Partners LLC acquired four multifamily buildings in a portfolio transaction for $169 million. The SoCal Four-County Multifamily Portfolio consisted of four institutional-quality multifamily properties strategically located in four of Southern California’s most desirable communities. This collection of unique properties represented the opportunity to acquire a geographically diverse portfolio and immediately create a substantial market presence. The portfolio consisted of 820 apartment homes, totaling 677,574 square feet and ranging in age of development from 1986 to 2006: Las Flores, 312 apartment homes in San Diego’s UTC submarket, located at 7039 Charmant Drive; Whispering Winds, 250 apartment homes in San Clemente, Orange County, located at 1100 Calle del Cerro; NoHo Gardens, 100-units in the NoHo Arts District located at 11201 Otsego Street in North Hollywood, Los Angeles; and DiRenzo, 158 luxury apartment homes in Riverside’s Sycamore Highlands/Canyon Crest submarket, located at 5880 Lochmoor Drive.
Closing the deal:
New management across the portfolio has created value through improved operations. In the case of Las Flores and Whispering Winds, significant physical enhancements have taken place since their January acquisition including exterior paint, renovation and interior rehab. Las Flores is now branded as Avana La Jolla and Whispering Winds is Avana San Clemente.
There have been very few portfolio offerings of this size in the last couple of years, making this a unique opportunity. The CBRE execution team was able to transact with the first buyer selected, and guide the buyer (Greystar) seamlessly through the entire process including the debt assumption in a short timeframe.
With properties located in San Diego, San Clemente, North Hollywood and Riverside, the portfolio consisted of four assets of varying quality – unique in vintage, design, location and value-add positioning – in four different markets that required a coordinated marketing effort. The team needed to source a buyer to purchase all four properties encumbered by debt and the buyer had to be willing to work with the existing lender on new debt. The primary challenge was maximizing the proceeds for the seller while keeping the ease of a portfolio sale versus one-offs, and having the buyer secure Freddie Mac new financing to create a significant pay off discount for the institutional seller – plus coordinating with the debt finance group as well.