LOS ANGELES (April 28, 2015) – The Laramar Group, a national real estate investment and management company, today announced the sale of Pravada East, a 44-unit apartment complex in North Hollywood for $9.45 million, marking the first disposition of Laramar's recent investment cycle in Southern California. Additionally, Laramar has completed the acquisition of 207 North Oxford Avenue, a 32-unit mid-rise apartment complex located in the Koreatown area of Los Angeles, for $3.46 million. This building is the firm's twentieth acquisition in the region over the past 24 months, growing the total number of units owned and managed in Los Angeles to 6,500.
“Pravada East is ideally situated in the high-demand North Hollywood neighborhood and upon entering the Los Angeles market 24 months ago, it presented an attractive value-add investment opportunity consistent with our location-driven investment program,” said Matthew Levy, Vice President of Acquisitions, The Laramar Group. “Laramar has demonstrated the success of its reposition strategy with this first disposition from our recent investment cycle in the Los Angeles market.”
Pravada East, a non-rent controlled asset, consists of 44 one- and two-bedroom apartments. During Laramar's ownership, the firm invested significant capital to enhance the property consistent with its growing apartment portfolio, including upgrades to improve curb appeal, landscaping, common area amenities, such as the pool, infrastructure upgrades and significant updates to contemporize unit interiors.
“Pravada East attracted double-digit offer activity as a result of the property's desirable unit mix, proximity to jobs and recent repositioning completed by The Laramar Group,” said Paul Darrow, Associate Vice President, Marcus & Millichap. “There is an abundance of capital looking for mid-sized apartment product in Greater Los Angeles; the key is identifying the smart opportunities.” Darrow, along with Executive Vice President Ron Harris from Marcus & Millichap, represented The Laramar Group in the sale of Pravada East.
“As Laramar continues to grow in Los Angeles, we will invest in urban, infill buildings located in vibrant, established neighborhoods,” said Levy. “207 North Oxford Avenue is a particularly attractive investment opportunity in Koreatown given its equidistant location from downtown and Hollywood—two of the city's most exciting job centers. The Oxford property precisely reflects Laramar's focused investment strategy.”
The 21,880-square foot, 1920s property consists of a mix of studio and one-bedroom residences. Laramar has committed capital to a strategic renovation program that will enhance the property and improve the living environment for residents, making 207 North Oxford Avenue best-in-class for the product type. The planned interior and exterior upgrades include modernizing the building's exteriors, enhancing the common areas and refreshing the individual units with contemporary finishes.
“Rents in Koreatown are headed in a positive direction and this property is well situated in a prime location to capitalize on the favorable market conditions in the area,” said Brent Sprenkle of Berkadia Real Estate Advisors, who represented the seller on the 207 North Oxford Avenue transaction. “The thriving location attracted wide buyer attention.”
Situated at the intersection of Beverly Boulevard and Western Avenue, 207 North Oxford Avenue provides both convenient access for commuters to Los Angeles' growing Metro railway system and major highways and a prime Koreatown location with a vibrant dining and entertainment scene within walking distance.
The Laramar Group, founded in 1989 and with corporate headquarters in Chicago and property management headquarters in Denver, is a national real estate investment and management company. With an established strategy of pursuing value-add investments in multi-family real estate assets on a national basis, The Laramar Group and its predecessor company have invested roughly $3 billion throughout the United States and currently owns and/or manages in excess of 30,000 units and over 1M square feet of retail assets. For each of its own investments, The Laramar Group oversees all renovation programs—from concept to construction—and property management. For more information, please visit www.laramargroup.com.