Newmark[1] announces it has completed the sale of Millennium Gardena, a fully entitled development site slated for 262 multifamily units and located at 12850 Crenshaw Boulevard in the South Bay neighborhood of Hawthorne, California.
Newmark Senior Managing Director Chris Benton, Managing Director Anthony Muhlstein, Co-Head of Capital Markets Kevin Shannon and Executive Managing Director Ken White represented the seller, The Dinerstein Companies. The buyer was a joint venture between Cityview and Stockbridge.
The sustainability-focused multifamily building planned for the site will be called South Bay X, and will feature a combination of studio, one- and two-bedroom units ranging from 510 to 1,197 square feet. It is expected to break ground during the fourth quarter of 2022 with a targeted delivery in early 2025. Sustainable features planned for the building include LEED Silver certification, high-performing lighting, enhanced indoor air quality, and a renewable-energy-powered solar thermal water heating system. Building amenities will include a state-of-the-art fitness center, resort-style pool, spa, lanai, outdoor strength area, barbeques and open-air courtyards.
“South Bay is an undersupplied multifamily market adjacent to some of the largest tech firms in Los Angeles,” said Benton. “With multifamily market fundamentals extremely strong across the region, the buyer’s plan to build sustainable, market-rate housing will be well received.”
Muhlstein added, “Millennium Gardena will serve as a great addition to an underserved apartment market with leading local employers such as Ring and SpaceX.”
Millennium Gardena’s location in the fast-growing South Bay neighborhood offers convenient access to the area’s diverse mix of technology, aerospace and ecommerce employers including Tesla, SpaceX and Ring directly adjacent to the property. The site is less than one mile from Interstate 105, and just three miles from Interstates 405 and 110. The transit-oriented location is two blocks from the LA Metro Green Line and less than five miles from Los Angeles International Airport (LAX).
“Major global tech, aerospace, automotive and ecommerce corporations are relocating to this South Bay community, making it a perfect time for Cityview and Stockbridge to execute on our shared vision for bringing new jobs and building much needed, quality market-rate workforce housing to this undersupplied market,” said Cityview CEO Sean Burton in a prepared statement. “We are both eager to be part of the revitalization efforts taking place in this region and provide increased sustainable living options to our residents.”
U.S. multifamily investment sales volume reached an unprecedented $148.9 billion during the fourth quarter of 2021, according to Newmark Research. Annual sales volume rose to a record high of $335.3 billion, an increase of 128.2% year-over-year. Investment as a percentage of the overall US commercial real estate market rose to 41.5% in 2021, the highest allocation to multifamily on record. Absorption surged to 673,478 units in 2021, far outpacing the new supply of 358,734 units. Strong demand over the trailing 12 months in Los Angeles, New York and Washington, D.C. is an encouraging sign of momentum in large, supply-constrained markets.
