Multifamily investment firm Cityview and San Francisco-based Stockbridge announced the acquisition of a fully entitled apartment project set for 265 new units in Los Angeles County’s South Bay.
South Bay X will feature a mix of studio, one- and two-bedroom apartments ranging from 510 to 1,197 square feet in the city of Gardena. The project is set to break ground in the fourth quarter this year, and it’s expected to be complete in early 2025.
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Property records show the two firms paid $23.3 million for the land at 12850 Crenshaw Boulevard. It’s adjacent to prominent employers, including SpaceX, a Tesla design center, and the video doorbell company Ring.
“Major global tech, aerospace, automotive and ecommerce corporations are relocating to this South Bay community, making it a perfect time for Cityview and Stockbridge to execute on our shared vision for bringing new jobs and building much needed, quality market-rate workforce housing to this undersupplied market,” Sean Burton, CEO of Cityview, said in a statement.
With a relentless housing crisis throughout the region, multifamily rents in Southern California have reached new highs while the number of vacant units has dipped to record lows, according to NAI Capital. The overall vacancy rate for multifamily properties dropped to a historic low 3 percent in the fourth quarter of 2021.
L.A.-based Cityview has been building and acquiring multifamily development around L.A. County throughout the pandemic. In November 2021, Cityview teamed up with Clarion Partners to acquire a $161 million apartment complex in Burbank, and the firm is currently building a $125 million development with 300 units in South-Central L.A.
Meanwhile, Stockbridge and its affiliates have approximately $24.9 billion of assets under management spanning all major real estate property types.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
