LOS ANGELES, CA - Prana Investments has acquired a two-building multifamily portfolio in the Pico Union District of Los Angeles for approximately $2.5 million, according to Henry Garcia of Keller Williams Commercial Studio City who represented the buyer in the off-market transaction.
The adjacent properties are located at the corner of Albany Street and W. 10th Place, approximately one mile from Staples Center and LA Live. Collectively, the properties total 27 units, primarily single and one-bedroom floor plans. Both properties, which were acquired out of bankruptcy court, were in various degrees of disrepair. The properties will benefit from extensive renovation that will include new roofs, interior and exterior paint, along with interior unit improvements. Garcia, who represents both buyers and sellers of multifamily assets that typically fall under the radar for most investors, approached the owner about selling the properties after learning of the bankruptcy proceedings.
“Handling a bankruptcy transaction can be a lengthy and difficult process because of all the payoffs that need to be negotiated,” said Garcia. “However this was an opportunity for Prana to invest in two well located assets. With proper management and cost-effective improvements, these two properties will prove to be a great investment for Prana.”
Prana specializes in the purchase of multifamily assets in inner city neighborhoods of Los Angeles, San Francisco and New York City. Its Los Angeles portfolio counts more than 1,500 units.
The Pico Union District is one of the strongest rental markets in Los Angeles, according to Garcia. Sandwiched between Koreatown and Downtown Los Angeles, approximately 90 percent of the 45,000 residents living in the 1.6-square mile area are renters.
“This is a hard working, blue collar neighborhood that is experiencing positive changes,” said Garcia.
Acquisition financing was provided by Opus Bank and was arranged by Danny Abergel of Marcus & Millichap.