IRVINE, Calif. – April 11, 2019 – Berkadia announced today the $62.9 million sale of Park Western Estates, a 216-unit garden-style multifamily property in the San Pedro area of Los Angeles. Senior Director Bruce Furniss and Managing Director Joe Leon of Berkadia’s Irvine, California office completed the sale on behalf of the seller California-based Park Western Apartments, a California Limited Partnership. The buyer was SDG Housing Partners, also based in California. The deal closed on March 28, at a record 2.72 percent cap rate on in-place operations.
“Forty-eight percent of residents at Park Western Estates already receive assistance from a project-based Section 8 subsidy, which will now go through HUD’s mark-up-to-market program,” said Furniss. “This purchase will also increase affordability on the remaining tenancy, which is currently restricted per LA City’s Rent Stabilization Ordinance, making the entire community affordable to residents living below 60 percent of Area Median Income (AMI). The buyer will invest $50,000 per unit in a major rehabilitation of the 50-year old property.”
Located at 1301 West Park Western Drive, the property features one-, two-, three- and four-bedroom units with plush carpeting, spacious kitchens with refrigerators, hardwood-style flooring and generous closet space. Community amenities include beautiful courtyards, two gas barbecue areas, a children’s play area and laundry care centers. Park Western Estates affords convenient access to Peck Park, Point Fermin Park and Cabrillo Marine Aquarium.