IPA Orchestrates $60M Trade of 272-Unit Southern Calif. M-F Asset
- Nov 30, 2012
Coastal communities are high on investors’ list and Institutional Property Advisors had no problem securing a buyer for Archstone Ventura Colony, a quality apartment asset located approximately one hour outside of Los Angeles in Ventura, Calif. Acting on behalf of Archstone, IPA orchestrated the sale of the 272-unit property to Raintree Partners in a deal valued at just over $60 million.
“There was definitely a great deal of interest for the property, it being a coastal asset with a value-add opportunity,” Joseph Smolen, a director with IPA, told Commercial Property Executive. “I would say the interest came predominantly from institutionally profiled groups, whether they were discretionary fund advisors or sponsored capital groups, and there was a select group of REITs as well.” IPA represented both the buyer and the seller in the transaction.
Raintree has already outlined plans for the 24-year-old community at 848 Weber Circle. The company will submit the units to a comprehensive makeover, thereby taking Ventura Colony to a higher level in a multi-family climate where renters practically demand updated amenities.
Raintree relied on Beech Street Capital to arrange financing for acquisition financing, which came in the form of a Fannie Mae loan. The fact that the real estate company shelled out $220,680 per unit for the 12-acre asset speaks to the current state of the national multi-family sector, “It shows continued investor optimism for institutionally sized, well-located assets with a value-add component, and without a doubt, Ventura Colony’s location in a coastal market was an additional draw,” Smolen concluded.