From left, clockwise: Daydream Residences’ Griffin and Grace on Spring, Douglas Emmett’s The Glendon at Westwood and Carlyle Group’s Sofia Los Angeles
The 5 largest multifamily trades in Los Angeles this yr tallied $1.four billion, doubling final yr’s complete of $712 million.
The offers have been so massive in 2019 that even the priciest final yr — IMT Capital’s $167 million buy of the Stevenson Ranch complicated in Santa Clara — wouldn’t have cracked this checklist.
On this yr’s prime 5 have been institutional traders Carlyle Group, Douglas Emmett and Fairness Residential, which dropped massive cash for prime property in Koreatown, Westlake and Westwood; whereas Blackstone acquired a three-property portfolio in San Pedro and Santa Clarita. Nevertheless it was newcomer Daydream Residences, a Denver-based residence sharing operator, that took the highest spot. The corporate paid $405 million for the dual tower Griffin and Grace on Spring in Downtown.
However these 5 offers solely inform a part of the story relating to town’s general multifamily market. As an illustration, multifamily funding within the third quarter stood at $2.5 billion, down 7.7 p.c yr over yr, in keeping with CBRE.
In L.A., as elsewhere, it’s all about location. In response to a fourth quarter report from Institutional Property Advisors, the priciest multifamily gross sales of 2019 in L.A. have been clustered round Downtown, Westside, and the northern suburbs, roughly consistent with The Actual Deal’s checklist of largest trades. However the report additionally highlighted different spots, noting that trades in Inglewood, Lengthy Seashore, and Southeast Los Angeles comprised 30 p.c of this yr’s general multifamily gross sales.
TRD’s checklist of largest multifamily trades in L.A. is predicated on property data, information clippings and market experiences.
The Griffin and Grace on Spring, DTLA — Daydream Residences | $405M
Daydream acquired the 575-unit complicated in July from Holland Accomplice Group. The dual 24-story buildings at 732 and 755 South Spring Streets are within the Trend District. Holland constructed each buildings, which opened in 2018. Iconiq Capital provided the financing for current sale.
Daydream has made different nine-figure multifamily funding in Denver and Seattle, selling residence sharing. The corporate helps renters sublease their models or put them on residence sharing web sites.
The Glendon at Westwood, Westwood — Douglas Emmett | $365M
Douglas Emmett snapped up this 350-unit condominium and retail complicated in June, with assist from the Qatar Funding Authority. The vendor was Clarion Companions. The constructing at 1040 Glendon Ave. close to the UCLA campus contains 50,000 sq. ft of floor ground retail house.
The sale value was considerably greater than the $300 million that Clarion paid Casden Properties for the property in 2014. Douglas Emmett, a Santa Monica-based actual property funding belief, calls itself as one of many largest homeowners and operators of multifamily and workplace property in L.A. and Honolulu.
Sofia Los Angeles, Westlake — Carlyle Group | $272.5M
Carlyle Group acquired the 648-unit condominium complicated in October.
The vendor, Holland Companions, had put the property available on the market for $330 million in June 2018. The sale meant Holland Companions accepted 17 p.c lower than asking for the Sofia, which spans practically the complete block at 1120 W. sixth St. The property contains 28,000 sq. ft of retail house.
Subsequent on Sixth Residences, Koreatown — Fairness Residential | $189M
Sam Zell’s Fairness Residential bought the 398-unit constructing from Century West Companions, snagging property in a quickly creating Koreatown.
The August sale got here a yr after Santa Monica-based Century West accomplished the seven-story improvement, after having acquired the land for $21 million in 2014. Chicago-based Fairness Residential owns dozens of properties within the L.A. space and is without doubt one of the largest multifamily landlords within the U.S.
Three-property portfolio in Santa Clarita and San Pedro — Blackstone Group | $177.5M
Blackstone acquired this 494-unit portfolio in September from TruAmerica Multifamily, which has been a frequent associate. The properties embody two in Santa Clarita: the 158-unit Canyon Crest Condominium Properties at 23639 Newhall Avenue and 176-unit Canyon Ridge Residences at 23645 Meadow Ridge; and in San Pedro: the 160-unit Harbor View Residences.