Greystar Real Estate Partners, LLC (“Greystar”), a global leader in the investment, development, and management of rental housing properties, today announced that Greystar Equity Partners IX, L.P. (“GEP IX”) acquired, through separate unrelated transactions, two Los Angeles multifamily properties comprising 374 units for an aggregate purchase price of $178 million. GEP IX is part of Greystar’s flagship, value-add fund series.
In the first transaction, Greystar acquired Gardens at Wilshire Center, a 195-unit multifamily community located at 3675 Wilshire Blvd in Koreatown. In the second transaction, Greystar acquired Villas at Rancho Palos Verdes, a 215-unit multifamily community located at 6600 Beachview Drive in Ranchos Palos Verdes.
“We like the growth prospects in both Rancho Palos Verdes and Koreatown as well as the overall fundamentals of the Los Angeles market,” said Kevin Kaberna, Senior Managing Director and leader of Greystar’s US Investment platform. “These transactions represent a continuation of Greystar’s strategy to acquire well-located assets in high-barrier markets where we can leverage our platform to create value.”
Greystar’s local operational experience in Koreatown helped the company identify the opportunity to add substantial value to the Gardens at Wilshire Center through interior and common area upgrades and improvements. With a walk score in the upper 90’s, the property offers convenient access to Downtown LA, Hollywood, Silver Lake and all of the major transportation networks throughout the region. Within just 4 miles of the property, there are over 5,000 companies compromising more than 250,000 jobs and over 7 million square feet of office space.
“Greystar is able to add value through capital renovations while still maintaining attainable rents that are priced at a discount to new developments,” said Kaberna.
The Villas at Rancho Palos Verdes is located adjacent to the world class Terranea Resort and 200-foot bluffs that overlook the Pacific. The apartment community is one of the only sizable oceanfront multifamily assets on the Palos Verdes Peninsula. The area is very desirable not only for its views, but for its top-ranked schools, which are some of the best on the West Coast.
“With no new rental supply in this submarket since the 1970s and a growing demand for coastal luxury living, we saw a tremendous opportunity to reposition the asset through extensive capital and operational enhancements,” said Kaberna.
As the nation’s largest apartment operator, Greystar currently manages more than 10,000 units in the Los Angeles metro area and over 400,000 units globally. Since 2011, Greystar has acquired 11 properties in Southern California totaling $720 Million. Greystar will continue to leverage its local market expertise and deep industry relationships to continue identifying attractive investments and management opportunities throughout the Los Angeles area.
