Intercontinental Real Estate Corporation in joint venture with MG Properties has acquired The Lexington Apartments, a 178-unit apartment community in the Southern California community of Agoura Hills for $87.3 million.
Built in 1986, The Lexington offers a unit mix of one- and two-bedroom apartment homes housed in 11 two-story residential buildings on a 15-acre-site at 30856 Agoura Road. 100% of the unit interiors have been renovated over the past five years by the seller.
Agoura Hills is in the heart of the Conejo Valley, an affluent region 35 miles west of Downtown Los Angeles and encompassing northwest Los Angeles County and southeast Ventura County. It includes the cities of Agoura Hills, Oak Park, Westlake Village, Newbury Park and Thousand Oaks. The area has been a magnet for families wanting to benefit from the strong school systems, vigorous park and outdoor recreational programs and growing regional economy. Amgen, Teradyne, Dole Foods, JD Power, Farmers Insurance and the Los Angeles Rams all have regional or corporate headquarters in the Conejo Valley.
“More than 80 percent of the housing stock in Agoura Hills is single family housing,” said Jessica Levin, Intercontinental’s Senior Director, Acquisitions out of the Boston-based firm’s Los Angeles office. “With median home prices of nearly $1.2 million, and a limited multifamily inventory with very little in the pipeline, Agoura Hills can arguably be considered one of the strongest and most stable suburban multifamily markets in the greater Los Angeles area.”
According to the Southern California Association of Governments, there are only 1,249 multifamily units in Agoura Hills, with less than 500 units built since 2000.
“The opportunity to acquire a first-to-lease community in this desirable suburban neighborhood is extremely rare, especially one of this size,” added Levin.
The Lexington is the largest multifamily transaction by unit size in Agoura Hills in the past 10 years according to Real Capital Analytics. During that time only five apartment communities with 100 or more units have traded hands in all of the Conejo Valley.
Together, the joint venture has a 3,200-unit multifamily portfolio consisting of eight communities in first and second ring suburban markets outside of Los Angeles, Denver, Phoenix, Portland, San Diego and the Bay Area. In February, the joint venture acquired a 394-unit garden-style multifamily community in the Denver submarket of Aurora, CO for $143 million.
“The Lexington is a unique asset that is well positioned to benefit from a recovery in the L.A. region. We are excited to expand our joint venture with Intercontinental and pleased to add to our portfolio’s operating scale in the region.” added Jeff Gleiberman, MG Properties’ President.
The Northmarq team of Vince Norris, Jim Fisher, Mike Smith and Bryan Schellinger marketed the property on behalf of the seller, a Calabasas, CA-based real estate development and investment firm.