THOUSAND OAKS, CA-A San Mateo-based investment group called
APIP Pavilion LLC has acquired the 142-unit Pavilion Apartments
from Pavilion Associates of Corona Del Mar for $42.5 million
and plans major upgrades to the property, according to Hendricks
& Partners. Dean Zander of Hendricks& Partners, who
brokered the deal on behalf of both buyer and seller, tells
GlobeSt.com that the new owner's plans include improvements
to both the living units and the common areas of the complex.
Zander calls
the deal "a unique opportunity for the buyer to acquire
a large complex in a high-demand market with very limited
competition." He notes that the seller had owned the
complex for more than 20 years and that the sale price works
out to a cap rate of 5.5% on stabilized income.
The property,
at 550 N. Laurie Lane, is just west of Moorpark Road and Hillcrest
Drive, west of the Janss Marketplace and about a mile west
the Oaks shopping mall. It was built in 1967 and consists
of 26 two-story buildings situated on nearly nine acres.
Zander points
out that the property features oversized units, with apartments
ranging from one to three bedrooms in floor plans ranging
up to 1,600 sf. Common area amenities at the Pavilion include
a two-story clubhouse with a large fitness center, two pools
and a spa.
The sale
of the Pavilion illustrates that buyers are still pursuing
value-added multifamily deals in Southern California. In recent
weeks, for example, three apartment properties that Zander
sold in Hollywood, Lakewood and Glendale totaling 514 units
traded for a combined total of nearly $130 million. In all
three of those deals, according to Zander, the properties
offered upside to their new owners through upgrade programs
that will result in higher rents.
