LOS ANGELES, CA - Vista Investment Group (Vista), LLC has sold two Hollywood apartment buildings in separate transactions totaling $23.7 million.
Avondale Hollywood, a 58-unit apartment complex located at 1825 N. Cahuenga was sold to a private investor for $11.5 million. After acquiring the asset in 2013, Vista completed a significant capital improvement program to reposition the classic 1920’s four-story apartment complex to appeal to Hollywood’s millennial rental market. Changes included a modern upgrade to the interiors of the bachelor, studio and one-bedroom apartment units, while retaining many of the original vintage architectural and interior design elements.
The renovation also included upgrades to the plumbing and electrical systems, refinishing of the original hardwood floors, a new lobby with lounge seating and Wi-Fi, as well as a new patio and outdoor amenities. The upgrades, combined with an improving rental market enabled Vista to grow in-place rents as units turned, increasing the property’s value and salability.
Vista also has sold Sunset Formosa, a 36-unit apartment complex to another private investor for $12.2 million. The property benefits from its prime western Hollywood gateway location at 1522 N. Formosa Avenue between Sunset and Hollywood Boulevards, within walking distance to the area’s restaurants, shopping and world-class entertainment venues. Vista, which has owned the property since 2012, invested more than $500,000 to improve unit interiors and the curb appeal of the three-story building constructed in 1985. Each of the studio, one- and two-bedroom units feature stone countertops, modern stainless steel appliances and upgraded fixtures throughout.
The sale of both Avondale and Sunset Formosa is part of Vista’s long-range plan to divest of its multifamily assets upon stabilization, and enables it to focus more time and attention on larger opportunities with equity partners.
“We easily met our pro formas on these two assets at or before the projected hold period, while still leaving value on the table for the new owners,” said Vista President Jonathan Barach. “While we will continue to use our own capital on certain investments, we are going to focus more on our new joint venture platform which will allow us to leverage our skills and expertise to look at a wider array of deal opportunities and expand into new markets,” he said.
“I have worked with Vista on more than a dozen transactions since their launch in 2009, and they have consistently outperformed the market,” added Madison Partners Senior Executive Director Darin Beebower who represented all parties in the transactions. This new platform should afford them the opportunity to significantly expand their reach.”
Vista recently acquired assets in San Diego and the San Francisco Bay Area and is in contract to acquire two properties in the Pacific Northwest.
“As we continue to grow as a firm, the JV strategy is a logical evolution that allows Vista to judge opportunities based on a deal’s merits, rather than our internal equity limits,” he said.
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 real estate in the western United States. Established in 2008, and headquartered in Santa Monica, CA, the Company focuses on value-add and opportunistic strategies in the multifamily, mixed-use and office sectors. Vista’s portfolio, primarily located in urban infill markets within California, includes approximately 1,200 multifamily units and 400,000 square feet of office space.