WESTLAKE VILLAGE, CA - Real estate investment firm Vista Investment Group has closed on multifamily properties in Koreatown and Hollywood, the first two assets in a $50 million portfolio acquisition of four Los Angeles area rent controlled apartment communities totaling 167 units. Vista expects to close on the remaining assets -- located in Culver City and Mar Vista -- by the end of February.
Since 2009, Vista has invested in more than 1,500 rent-controlled units in Los Angeles, fueled by the belief that when properly operated, they can offer excellent risk-adjusted returns, according to Vista President Jonathan Barach.
“Rent-controlled properties, particularly those of older vintage, are inherently downside protected as vacancy rates and rent growth remain fairly stable through both up and down cycles. This translates into more sustainable and consistent cash flow over the long term,” Barach said. “Consequently, we are doubling down on this strategy as we expect these properties to outperform the overall market on a risk-adjusted basis as we get longer into the cycle.”
Park Winona, built in 1963, is a three-story building located at 1840 Winona Blvd. in the Hollywood submarket of Los Feliz. The property features 50 apartment homes, offering studio, one- and two-bedroom floor plans.
Strong job growth fundamentals, driven by the influx of media, technology and entertainment companies into the area, make the property a desirable location for renters. According to bestplaces.net, future job growth over the next 10 years in the Hollywood market is predicted to be 36.3 percent, just under three percent higher than the US average of 33.5 percent.
Vista will initiate a capital improvement programthat includes upgrading apartment interiors with high end finishes andrenovating common areas and amenities.
Tony Azzi from Marcus and Millichap represented the seller.
The Leeward Apartments, built in 1923, is a three-story building located at 2810 Leeward Ave in Koreatown. The 19,776-square-foot building features mostly studio apartments, as well as a limited number of one-bedroom homes.
Koreatown’s high level of accessibility continues to attract people who are looking for housing that offers a balance of urban living and manageable commute times to jobs throughout Los Angeles. Vista will initiate a capital improvement programthat includes upgrading apartment interiors, renovating all community amenities and refreshing exteriors and landscaping.
Bryan Glenn of Kidder Matthews represented both Buyer and Seller in the transaction.
About Vista Investment Group: Vista Investment Group, LLC is a privately held real estate investment firm, engaged in the acquisition and active management of commercial property located in urban infill markets throughout California and the Pacific Northwest. The Los Angeles-based company was founded in 2008 by Philip Barach and Jonathan Barach, to focus on value-add and opportunistic strategies in the multifamily, mixed-use and office sectors. To date, Vista has acquired over 2,000 multifamily units and approximately 1.8 million square feet of office space.