GALLERY AT NOHO COMMONS SELLS FOR $96 MILLION
LOS ANGELES — Multi-Housing Capital Advisors has arranged the sale of The Gallery at NoHo Commons, a luxury apartment community located in Los Angeles, for $96 million in one of the largest single-asset multifamily sales in Southern California this year. The 438-unit, Class A community is located in North Hollywood at the intersection of Chandler Boulevard and Fair Avenue. It features 286 one-bedroom units and 152 two-bedroom units. Amenities include a clubhouse with a recreation room, a bar area and a big-screen television. Other amenities include a sound-proof recording studio, business offices, a cyber cafe, a fitness center with an attached dance studio, and a resort-style pool and spa. The community also features two five-story parking garages with a total of 778 spaces.
The project was originally developed as a public-private partnership that involved the City of Los Angeles' Community Redevelopment Agency. The property has an agreement in which 115 of the units are operated as affordable housing.
Curtis Palmer, Herb Chase III, Peter Sherman and Brad Pennington of Multi-Housing Capital Advisors represented the seller, SF NO HO LLC, a subsidiary of Fairfield Residential. The buyer was Dallas-based Behringer Harvard Multifamily REIT I. According to Palmer, a principal with Multi-Housing Capital Advisors, a deal such as this can actually be seen as a positive market indicator.
“I think right now may be the best time in the past 10 years to buy multifamily,” he says, adding that the ability to purchase core, infill assets such as this at below replacement cost should be taken as a positive sign by buyers. “To try and replicate this deal today would cost over $300,000 per unit and they paid $228,000.”
— Coleman Wood