Coldwell Banker Commercial West was engaged by a local mom & pop in the divestment of an active adult community in Huntington Park, California. The community is under a building covenant that mandates it be used as 55+ housing with 20% of units rented to low-income seniors until 2038.
Built in 1989 with renovations done on 50 of the units in 2005, Seville Gardens Apartment Community comprises 225 units, sits on 1.09 acres and stands four stories tall. Occupancy was hovering around 65%. The community was not stabilized at the time of sale and rents were 25% to 30% below market value. It was making around $675,000 at the time of the sale.
Tom Papoulias of Coldwell handled the transaction, noting a particular hurdle being the cost of recapping the units. There was a competitive bidding environment with 14 offers. The ultimate buyer was private real estate investment firm Equity Consultants Equity Inc. An off-site management company will operate the community going forward. The purchase price in this all-cash transaction was $33.75 million, or $150,000 per unit.
