IREA Handles $26.50 Mill Sale of New Rental Residential Property
Investors Buy Valley Village units in $26 million Short Sale
With the housing market still weak, new upscale condominium developments are continuing to be converted into apartments.
The latest example is Magnolia Nest, a 97-unit in Valley Village that was completed this year and recently passed into new hands in a $26 million short sale.
The 128,000-square foot-property, which includes an oversized spa, weight room and putting green, was acquired in October by Brooktree Reality Investors, a Beverly Hills-based investment group.
The property was sold by Studio City investment group Magnolia Nest LLC. The note holder, New York real estate investment trust iStar Financial, agreed to a $26 million offer - $10 million less than what it was owed, said Clark Everitt, a vice president at Encino-based Investment Real Estate Associates, which represented the buyer and seller.
"Our perspective is lenders are willing to cooperate under the right circumstances with the short pay," he said. "It gets them the funds faster and it avoids any kind of legal hassles that may arise with trying to foreclose on a property."
The condominium market remains weak. The median price of a unit in the country has been about $300,000 for the past three months, while sales were off 19 percent in October from a year earlier, according to HomeData of Hicksville, N.Y.
"There’s a wonderful exit strategy seven to 10 years down the road," said Everitt, who noted that the building could be converted back into condos at that time. Everitt’s brother William, a vice president at IREA, also represented the buyer and seller.
(Originally reported in LABJ November 15, 2010)
Read more at Globe St.
Brooktree Realty Investors Spends $26 Mil on San Fernando Valley Multifamily Property
Brooktree Realty Investors closed on a very newsworthy multifamily investment buy in the San Fernando Valley, paying $26.05 mil for the Magnolia Nest condominium complex, a 97-unit ($269/unit) rental property. The property is located at 11945 Magnolia Blvd., at the corner of Magnolia Blvd. and Ben Ave., just two blocks east of Laurel Canyon Blvd. in Valley Village.
Magnolia Nest was originally constructed earlier in 2010 as a condo project, but is being delivered empty as an upscale rental property. Building amenities include a large, fully equipped professional exercise and weight room, oversized spa, BBQ area and putting green. The gross building area totals 127.8k sf of space.
Clark Everitt and William Everitt of Investment Real Estate Associates represented both the buyer and the seller, Magnolia Nest LLC, in the deal, a short sale. The buyer was also responsible for all additional closing costs.”
(Originally reported by RENTV on November 12, 2010)