Jason Zhu and The Madison apartments at Town Center in Valencia (Credit: The Madison at Town Center, Gemdale USA)
UPDATED, Monday, January 29, 2018, 3:30 p.m.: Gemdale USA acquired the Madison at Town Center apartments in Valencia for a cut-rate $46 million from NF Capital Finance Southwest. A subsidiary of China’s Gemdale Corp., Gemdale USA’s purchase is the latest in its push to further expand into the Los Angeles area.
The seller is an affiliate of Decron Properties, CoStar reported.
Located at 24555 Town Center Drive in the Santa Clarita Valley near the Westfield Valencia Town Center, the 130-unit complex is comprised of three mid-rise buildings. One-bedroom units start at $1,710 per month, while three-bedroom apartments can range up to $3,880 per month, according to Apartments.com. Amenities include a swimming pool, media room, fitness center and clubhouse.
The property last traded for $56.6 million in January 2012, Real Capital Analytics’ property records show. Decron purchased a total of 264 units at the time, according to broker Joseph Grabiec, a senior managing director at Institutional Property Advisors. This time, only 130 apartment units were traded.
Gemdale has been keeping active in the Los Angeles market. The company is developing the $125 million mixed-use Deluxe Hollywood at 1350 North Western Avenue with LaTerra Development, as well as the $91 million Pinnacle 360 in Beverly Junction. It also owns the South Hills Community in West Covina, an 85-unit value-add acquisition from October 2016.
That’s in addition to its projects in San Francisco, New York, Boston and San Jose, California.
Gemdale’s purchase comes amid a slowdown in Chinese investment as the government tightens the belt on overseas spending. Outbound investment is still robust, but fell about 30 percent last year to $120 billion, according to government figures.
Still, Shanghai-based developer Greenland Group just recently upped its stake in the 22-acre mixed-use Pacific Park project in New York. Its American arm – Greenland USA – is also behind the Metropolis in Downtown LA, whose broker is the Agency. [CoStar] – Natalie Hoberman
Correction: This story has been updated to explain the price difference between the sales to Gemdale and Decron.
Powered by WPeMatico