AvalonBay Sells North Hollywood Apartments at a Loss
The 156-unit asset traded for 14% less than it did in 2016
By Greg Cornfield June 4, 2024 10:00 am
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AvalonBay Communities, one of the largest owners and managers of multifamily real estate in the United States, has unloaded a 156-unit asset in the North Hollywood neighborhood of Los Angeles’ San Fernando Valley.
Prime Residential put down $62.1 million, or $393,077 per unit, for AVA North Hollywood, according to Institutional Property Advisors (IPA), a division of Marcus & Millichap, which brokered the deal. Records show AvalonBay acquired the asset for $72.1 million in September 2016.
AVA North Hollywood was built at 5077 Lankershim Boulevard in 2015. It features 11,000 square feet of ground-floor retail, a swimming pool and spa, a clubroom, a sky deck, a leasing office, a café and a business center. The retail space is fully occupied by four eateries, a Pilates studio, and a massage and spa center.
“After substantial development in the submarket pre-COVID that was met with positive absorption but muted rent growth, the area is starting to hit its stride,” Kevin Green, IPA’s executive managing director of investments, said in a statement.
Green and IPA’s Joseph Grabiec and Gregory Harris represented the seller.
Arlington, Va.-based AvalonBay remains one of the largest owners of apartments in L.A. with dozens of properties throughout the region. Prime also has a significant presence in L.A., including Park La Brea, the largest apartment property on the West Coast.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
