Sawtelle-based Hill Street Realty bought an apartment complex in Pasadena for $38 million, The Real Deal has learned.
The property, at 975 San Pasqual Street, is an 88,000-square-foot, 86-unit building near California Institute of Technology. The firm closed on the acquisition on Nov. 15, property records show. The seller is Guardian Life Insurance Company of America.
A spokesperson for Hill Street said the firm is “anticipating a large rent increase” after renovating the property. The company plans to upgrade the front entrance and the building’s common areas. It is funding the acquisition with a $19.7 million mortgage from J.P. Morgan Chase Bank.
The price works out to about $442,000 per unit.
Hill Street also owns apartment buildings in West Hollywood and Eagle Rock, according to its website. Its portfolio includes 1259 North Crescent Heights Boulevard, a 25-unit residential complex in West Hollywood, and 1574-1584 Yosemite Drive, a 50-unit property in Eagle Rock.
The most recent acquisition adds to a strong period of sales in Pasadena for the past 12 months. According to investment services firm Kidder’s third quarter multifamily market report, investment activity in the area sat at $281 million, which is higher than the 10-year average of $244 million. One of the largest deals in the city during the period was the $280 million sale of the Westgate Apartments in Old Town Pasadena. That property was acquired by a joint venture of the California Statewide Communities Development Authority and Waterford Property.
The sales activity coincides with an increase in rents. During the past 12 months, asking rents in the area rose by 6.2 percent. This figure is slightly above the 6 percent hike across the Los Angeles market.
The post Hill Street Realty pays $38M for Pasadena apartments appeared first on The Real Deal Los Angeles.
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