Raintree Partners closed on the acquisition of the LAVVA Portfolio (Los Angeles & Ventura Value Add Portfolio) in a $142 mil transaction. The sale, consisting of five properties totaling 551 units in Canoga Park, Camarillo, Glendale and Hollywood, worked out to an average price of $257.7k per unit.
The properties were sold by a West Coast-based family investment entity that acquired four of the assets between 1970 and 1985, and the fifth property in 2009. The seller’s average property ownership tenure is 35 years.
The properties have been very well-maintained and upgraded over the years, but there is significant value-add potential. The buyer plans to take advantage of this opportunity through capital investment improvements. The properties in the portfolio are: • Mountain View - 106 units in Camarillo, built in 1979 • Canyon Drive Manor - 137 units in Hollywood, built in 1973 • Perigee - 200 units in Canoga Park, built in 1985 • Imperial Manor - 64 units in Canoga Park, built in 1964 • Imperial Crest - 44 units, in Glendale, built in 1962
“The continued high demand for rental housing in Los Angeles has helped mitigate some of the negative aspects the COVID-19 pandemic has had on the local economy,” said Zander. “Despite an uptick in vacancies and some collection challenges, occupancy rates are still near historical highs, while rents appear to be holding up and showing signs of improving. Suburban areas, in particular, continue to outperform most urban locations.”
Added Weston, “Marketing the properties during the pandemic presented several challenges such as scheduling and conducting the many live and virtual tours for each property, as well as navigating the various ballot measures that could have materially impacted the success of the renovation plan. True value-add offerings continue to be highly sought by investors. Renovations ranging from minor cosmetic changes to major building upgrades allow investors to take advantage of strong rent growth.”
“This acquisition presents Raintree the opportunity to substantially increase our presence in east Ventura County as well as the Hollywood area and the San Fernando Valley,” said Mathew Barbiasz, Vice President of Acquisitions for Raintree. “With a host of well-paying jobs and entertainment options in each of these markets, the properties are well positioned for future growth.”