Concord Capital Scoops Up L.A. Apartments for 29% Discount

A Beverly Hills-based investment firm has acquired another multifamily property in Los Angeles’ Koreatown at a significant discount just a few months after buying a historic housing portfolio spread across the enclave and in nearby Hollywood.

Concord Capital Partners paid about $52.1 million for The View, a 13-story, 168-unit luxury apartment building at 3460 West Seventh Street. The price, equal to about $310,000 per unit, is nearly 29 percent less than the $73.3 million that the seller, MWest Holdings, paid for the asset in late 2018, according to property records.

JLL represented the seller. Concord announced the deal.

“We were attracted to The View because of the institutional quality and strong fundamentals in Koreatown,” Jonathan Fhima, Concord’s chief investment officer and managing principal, said in a statement. “Koreatown has led all Los Angeles submarkets in multifamily absorption over the past five years.”

Originally built in 1965, the property underwent a nearly $26 million renovation shortly before CIM Group acquired it in 2013. The complex features 12 studio apartments, 120 one-bedroom units and 36 two-bedroom units.

Separately, Concord over the summer spent $79 million on five historic multifamily properties in Koreatown and Hollywood totaling 537 units. Aside from the intrinsic value of the properties — all of which were built in the 1920s — Concord acquired the properties at relative discounts compared to previous sales and replacement costs, Reuben Robin, Concord’s CEO and founding principal, said at the time. 

“The lack of apartment construction [in L.A.] has caused major supply constraints which will cause continued upward pressure on rents,” Robin said of Concord’s deal for The View. “That, coupled with the massive infrastructure investment due to upcoming events like the Olympics and World Cup, keeps us feeling good about the imminent growth in this city.”

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