Dealmaker: Lion Acquires Three California Multifamily Properties for $42M

October 30, 2017

Lion Real Estate Group, Los Angeles, paid $41.6 million for a three-property apartment portfolio in California’s San Fernando Valley.

The firm sourced the transaction off-market from a Los Angeles private investor who developed the properties more than 40 years ago. Lion Real Estate Group Managing Principal Jeff Weller said the well-maintained portfolio allowed the firm to grow its San Fernando Valley presence. He noted the firm plans to upgrade the properties’ exteriors, improve common-area amenities and renovate the units as they turn.

The communities included:
–4355 Sepulveda Boulevard in Sherman Oaks, Calif., a 105-unit community with rents ranging from $865 to $1,600.
–7317 Haskell Avenue in Van Nuys, Calif., a 48-unit community with rents ranging from $590 to $1,600.
–6535 Haskell Avenue in Van Nuys, a 54-unit property with rents ranging from $450 to $1,350.

Balance sheet lender Mesa West Capital, Los Angeles, provided $28.7 million in first mortgage debt. Some proceeds from Mesa West’s five-year floating-rate non-recourse loan will fund a capital improvement program for the portfolio’s 207 units.

Michael Koshet, Off-Market Multifamily Specialist with KW Commercial, Los Angeles, represented the buyer and seller. Mesa West Capital Vice President Jason Bressler led the origination team.