Pacifica Equities has acquired Monarch Terrace, a 56-unit multifamily property in Glendale, for $17.1 mil, or $305k/unit. The property, located at 1595 East Chevy Chase Dr, just northwest of the confluence of the 134 and 2 freeways, was sold by Silverado Canyon Partners of Laguna Hills.
Silverado had invested $1.8 mil in capital improvements into the property since 2008 in order to upgrade and reposition Monarch Terrace. LA-based Pacifica used the purchase as a replacement property in a 1031 exchange.
Built in 1959, Monarch Terrace features studio, one- and two-bedroom layouts. Community amenities include a swimming pool, laundry facility, fitness center, controlled-access entry, subterranean parking and courtyard.
Berkadia’s Dean Zander and Vincent Norris represented both parties in the transaction. According to Zander, the renovated property still offers opportunity for further upgrades, making it highly attractive to investors, even though the per-unit price of over $305k was a record for local properties of this size and vintage.
Monarch Terrace is situated two miles from Glendale Galleria and roughly nine miles from Universal Studios Hollywood. The area's top employers include Nestle USA Inc., Occidental College, Avery Dennison Corp and Acco Engineered Systems.
Per Berkadia, apartment vacancy in the North Glendale / Burbank market was just 4% in the fourth quarter of 2015, basically unchanged from one year prior. Asking rents rose 6.5% year over year from $2,184 to $2,327/month for the year ended 2015.