Prime Residential Pays $115M for SoCal Multifamily Property
The deal is one of the largest multifamily sales in L.A. so far this year.
By Nick Trombola October 24, 2024 5:22 pm
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One of the most expensive multifamily deals in Los Angeles County so far this year has just closed in Pomona — but it isn’t another luxury high-rise.
Investment firm Prime Residential paid $115 million for a four-story, 312-unit building, dubbed The Gabriel, at 2771 North Garey Avenue to partners CP Capital and Greystar. The deal for the property, which the pair delivered in 2022, works out to roughly $368,600 per unit. It was 94 percent leased at the time of the sale.
Prime Residential also landed a $74.8 million loan from CBRE Capital Markets to help with the acquisition, according to The Real Deal, which first reported the news. It’s unclear who brokered the sale or the financing.
“The multifamily sector has faced challenges in recent years, but we remain optimistic due to its resilience amidst economic uncertainty and the heightened levels of renter demand that should persist long after the current wave of new supply is fully absorbed,” says Kristi Nootens, co-head at CP Capital, said in a statement. “The sale of The Gabriel, along with significant milestones across our portfolio, reinforces our belief that the sector is entering a new era of growth.”
A spokesperson for Greystar declined to comment. Representatives for Prime Residential could not immediately be reached for comment.
Although notable, the sale of The Gabriel is still well below the $186 million that FPA Multifamily paid to CIM Group for the 34-story 888 at Grand Hope Park residential tower in Downtown L.A. earlier this year. In terms of individual dwelling price, it’s also less than the $535,276 per unit that SCS Development Company paid to Sequoia Equities for a 163-unit building in Monrovia in August.
Still, Prime Residential has been busy in Southern California over the past year and change. In June, the company paid $62.1 million to AvalonBay Communities for a 156-unit building in North Hollywood — $10 million less than AvalonBay paid for it in 2016.
Last June, meanwhile, the company landed a massive, nearly $1 billion Freddie Mac loan toward its historic Park La Brea community near L.A.’s Miracle Mile neighborhood. The community is said to be the largest multifamily property west of the Mississippi River,, with 18 high-rise towers and 175 garden-style buildings housing some 10,000 residents.
Nick Trombola can be reached at ntrombola@commericalobserver.com.
