Concord Capital Pays $79M for Five Multifamily Buildings in Hollywood, K-Town

Multifamily portfolio trades are relatively rare in Los Angeles, yet a Beverly Hills-based investment firm has still managed to snatch up five historic properties across Hollywood and Koreatown.

Concord Capital Partners paid $79 million to two sellers for the properties, all of which were constructed in the 1920s and collectively feature 537 units. Concord acquired the properties via a $60.5 million senior loan from Arbor Realty Trust, alongside $30 million in equity. Northmarq’s Zalmi Klein arranged the financing. 

Kidder Mathews’ Janet Newman represented The Seligman Group, which sold The Fontenoy, a 51-unit building at 1811 Whitley Avenue; The Langham, a 181-unit building at 715 Normandie Avenue; The Sir Francis Drake, a 61-unit property at 841 Serrano Avenue; and The Piccadily, a 74-unit property at 682 Irolo Street. 

Colliers’ Kitty Wallace meanwhile represented Midwood Investment & Development in its sale of Park Wilshire, a 170-unit building at 2424 Wilshire Boulevard.

“We were attracted to these properties because of their favorable pricing relative to historical sales, replacement costs, and what we view as the intrinsic value of the assets,” Reuben Robin, Concord’s CEO and founding principal, said in a statement. “The properties have seen strong Class A renter demographics across nearly a full century of market cycles.”

The individual prices that Concord paid for the properties were not immediately available, but it likely acquired them at a collective discount compared to previous sales. Midwood, for example, had acquired Park Wilshire alone in late 2019 for $38.2 million — nearly half of what Concord paid for the entire portfolio. 

“Los Angeles is one of the most difficult cities in which to build scale, given the relatively small size of most buildings,” Jonathan Fhima, Concord’s chief investment officer and managing principal, added in a statement. “We’ve successfully assembled 537 units with significant value-add potential across five of L.A.’s most historically significant properties — buildings that have housed icons such as Marilyn Monroe, multiple U.S. presidents, and other high-profile figures.”

While multifamily portfolio sales in Hollywood are uncommon, individual properties have been trading hands in Hollywood lately. That includes the $98.4 million that Grubb Properties and PCCP paid in July for the 280-unit Fifty Five Fifty Apartments, as well as CityView’s $35.5 million deal in December for the 112-unit building at 1950 Tamarind Avenue.

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