Optimus Properties Pays Nearly $20.9 Million for 65 Units
By Nicole Miller February 18, 2022 | 10:34 AM
Safco Capital Corp. sold two apartment buildings in Los Angeles, California, for nearly $20.9 million, or approximately $321,000 per unit, to Optimus Properties.
The 23-unit, 12,880-square-foot Lofts at Downtown is located at 223 N. Alvarado St. and 301 The Park offers 42 units across 35,586 square feet at 301 N. Alvarado St. The elevatored, three-story properties feature covered parking, courtyards, laundry facilities and on-site management.
The properties were 98% leased overall at the time of sale, which closed at a reported in-place capitalization rate just north of 4%.
The portfolio offers the buyer a rare opportunity to acquire a mid-sized asset on the border of Echo Park in Los Angeles' historic Filipinotown, where assets of this size rarely become available for sale. Bryan Schellinger, Steven Goldstein, Vince Norris, James Fisher and Mike Smith of NorthMarq represented both the buyer and seller in the sale.
"The buyer [...] saw the positive leasing trends in this submarket coupled with the ability to increase current rents by the allotted amounts subject to AB-1482. Additionally, the moderately improved condition of the property allowed the buyer to implement a strategic value-add enhancement program," Goldstein said in a corporate statement announcing the sale. "The Alvarado collection fits well within the narrative of light-value-add deals, built after 1978, while still producing decent yields." Please see CoStar COMPS #5868977 for more information on this transaction.