Regions Southwest
Oct 29, 2007
By: Barbra Murray, Contributing Editor
The Serravella Apartments complex in the Hollywood area of Los Angeles has just come under new ownership, courtesy of a transaction valued at approximately $86.3 million. Security Properties Inc. sold the 298-unit rental community to Prometheus Real Estate Group, about two years after having acquired it in a partnership with GMAC Institutional Advisors for nearly $64.3 million.
Carrying an address of 1710 N. Fuller Ave., Serravella sits at the base of the Hollywood Hills near the legendary Grauman's Chinese Theater and the Hollywood Walk of Fame. The 217,000-square-foot mid-rise property was originally developed in 1986 and occupies nearly two acres just off the 101 Freeway.
Security Properties' decision to sell Serravella was based on its corporate strategy of holding assets for two to three years. Given the company's approximately $20 million profit from the sale--it invested only a couple of million in the property after buying it--the timing was right.
"There has been a lot of press that the real estate market in general is down, however, for triple-A locations like this, there is still tremendous interest," Lonnie Nadal, director of acquisitions for Security Properties, told CPN today.
According to multi-family sales and research firm Hendricks & Partners, which marketed Serravella on behalf of Security Properties, investor interest in the apartment complex was very strong. "We had offers from the expected pension funds, REITs and private families," Dean Zander, a partner with Hendricks, shared with CPN. Serravella has maintained s strong occupancy levels over the last several years, and rents continue to rise as demand increases. "In the Hollywood apartment market, specifically, there are close to 5,000 Class A multi-family units in the planning or development stages between Western and Fairfax, representing a combined $10 billion investment. Serravella is one of the best locations." New owner Prometheus, which relied on the representation of real estate investment brokerage company Marcus & Millichap in the transaction, will submit Serravella to a major upgrade to include the addition of a business center, and will also change the complex's name to The Vantage at Hollywood Hills.
Headquartered in San Mateo, Calif., Prometheus also owns assets in Northern California, as well as in Oregon, Utah and Washington. The company's portfolio encompasses over 16,000 multi-family units, with several thousand currently in the development phase or undergoing renovation. Seattle-based Security Properties manages and owns multi-family real estate, and has sponsored the purchase or development of more than 420 properties across the United States over the last 38 years.
By: Barbra Murray, Contributing Editor
The Serravella Apartments complex in the Hollywood area of Los Angeles has just come under new ownership, courtesy of a transaction valued at approximately $86.3 million. Security Properties Inc. sold the 298-unit rental community to Prometheus Real Estate Group, about two years after having acquired it in a partnership with GMAC Institutional Advisors for nearly $64.3 million. Carrying an address of 1710 N. Fuller Ave., Serravella sits at the base of the Hollywood Hills near the legendary Grauman's Chinese Theater and the Hollywood Walk of Fame. The 217,000-square-foot mid-rise property was originally developed in 1986 and occupies nearly two acres just off the 101 Freeway.
Security Properties' decision to sell Serravella was based on its corporate strategy of holding assets for two to three years. Given the company's approximately $20 million profit from the sale--it invested only a couple of million in the property after buying it--the timing was right.
"There has been a lot of press that the real estate market in general is down, however, for triple-A locations like this, there is still tremendous interest," Lonnie Nadal, director of acquisitions for Security Properties, told CPN today.
According to multi-family sales and research firm Hendricks & Partners, which marketed Serravella on behalf of Security Properties, investor interest in the apartment complex was very strong. "We had offers from the expected pension funds, REITs and private families," Dean Zander, a partner with Hendricks, shared with CPN. Serravella has maintained s strong occupancy levels over the last several years, and rents continue to rise as demand increases. "In the Hollywood apartment market, specifically, there are close to 5,000 Class A multi-family units in the planning or development stages between Western and Fairfax, representing a combined $10 billion investment. Serravella is one of the best locations." New owner Prometheus, which relied on the representation of real estate investment brokerage company Marcus & Millichap in the transaction, will submit Serravella to a major upgrade to include the addition of a business center, and will also change the complex's name to The Vantage at Hollywood Hills.
Headquartered in San Mateo, Calif., Prometheus also owns assets in Northern California, as well as in Oregon, Utah and Washington. The company's portfolio encompasses over 16,000 multi-family units, with several thousand currently in the development phase or undergoing renovation. Seattle-based Security Properties manages and owns multi-family real estate, and has sponsored the purchase or development of more than 420 properties across the United States over the last 38 years.
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