Big Housing Portfolio Sells for $85M in L.A.’s San Fernando Valley

A nearly 600-unit apartment portfolio in Los Angeles’ San Fernando Valley has traded hands in one of the region’s largest multifamily deals over the past year in terms of number of units.

Florida-based investment group Material Comforts, helmed by investor Yaacov Brenenson, paid $85 million for 16 properties in Van Nuys, North Hills, Panorama City and Canoga Park. Marcus & Millichap (MMI)’s Tony Azzi represented sellers Heitman, Invesco and Ethos Real Estate, and the firm’s Rabbie Banafsheha, Kristen Sullivan and Arteen Zahiri secured the buyer. The deal was the sixth-largest portfolio sale in L.A. County in 2024, per the brokerage.

Most of the properties are relatively small, with the vast majority under 30,000 square feet. The largest by far is 9010 Tobias Avenue in Panorama City, dubbed Midtown Apartment Homes, which features 201 units across 160,858 square feet. 

“The sale … stands out for its scale and the innovative incorporation of a nonprofit partnership with National Community Renaissance (National CORE), which delivered substantial financial benefits for the stakeholders and contributes to the expansion of affordable housing in Los Angeles,” Azzi said in a statement.

As part of the deal with National CORE, at least 50 percent of the units will be earmarked for tenants earning less than 80 percent of the area median income, per Marcus & Millichap. 

“While many are moving investments outside of California, we saw this as an opportunity to make a long-term investment in the future of Los Angeles,” Brenenson said.

Nick Trombola can be reached at ntrombola@commercialobserver.com.