Standard Communities has bought a newly built apartment complex in South Gate.
The Los Angeles-based company paid $130 million for the 244-unit complex at 10930 Garfield Avenue, according to CBRE’s Dean Zander and Stew Weston, who brokered the sale. The deal came out to about $532,000 per unit.
CBRE declined to name the seller, but public property records filed with Los Angeles County show Texas-based JPI sold the property.
JPI bought the site for the development in 2018 for $15.7 million and finished construction in December.
Rents at the complex currently range from $2,316 per month for a one-bedroom unit to $3,944 per month for a two-bedroom, according to the property’s website.
This is Standard’s second $130 million deal in six months. In December, the company bought a 349-unit complex in Pomona for the same price — but that complex was acquired through a workforce housing deal with Faring.
Standard’s newest deal is a switch from its recent focus on workforce housing deals. Workforce housing refers to properties that cap rents for eligible renters that make between 80 and 120 percent of an area’s median income.
Standard and Faring teamed up in August to buy at least 4,000 apartments to convert into workforce housing, as part of a deal with the California Statewide Communities Development Authority, a joint powers authority that was created by the state to help municipalities finance such projects.
This recent deal is straight market-rate housing — an opportunity for Standard to capitalize on rising rents and shrinking vacancy rates just before interest rates are set to rise further.
The post Standard Communities pays $532K per unit for newly developed South Gate apartments appeared first on The Real Deal Los Angeles.
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