$85 Million, 596-Unit Multifamily Portfolio Sells in 2024’s Largest San Fernando Valley Deal
Material Comforts Inc. partnered with National Community Renaissance (CORE) to acquire a 16-parcel, 596-unit multifamily portfolio in Southern California’s San Fernando Valley.
Sellers Heitman LLC., Invesco LTD and ETHOS Real Estate walked away from the transaction with $85 million ($142,617 per unit). The deal represented the largest multifamily transaction in the San Fernando Valley and the sixth largest in Los Angeles County in 2024.
The 98%-occupied portfolio comprises Class B and Class C apartment properties in Canoga Park, North Hills, Panorama City and Van Nuys. Marcus & Millichap’s Tony Azzi represented the sellers.
A Marcus & Millichap source told ApartmentBuildings.com that the sellers had acquired the portfolio in 2020 and decided to sell for strategic business purposes. “The transaction showcases the resilience and strategic expertise required to close deals in today’s challenging market,” commented Azzi in a press release about the sale.
Multiple Offers
Rabbie Banafsheha, Kristen Sullivan, and Arteen Zahiri, also with Marcus & Millichap, negotiated on behalf of the buyers. Banafsheha said the portfolio generated 28 offers following two open house events.
“A competitive ‘best and final’ process required all offers to close before the end of the year without contingencies, demonstrating how strategic execution and the collaboration of all parties involved can result in significant accomplishments within the industry,” Banafsheha said in the release.
The buyer beat out other bids because they offered the most favorable terms.
What’s Next?
According to the Marcus & Millichap source, the buyer is planning upgrades to the portfolio. Additionally, under the purchase agreement terms, National CORE will ensure that at least 50% of the residents earn under 80% of the Area Median Income (AMI), qualifying the owner for a property tax abatement.
“This acquisition underscores the importance of persistence and partnership in today’s market,” said Material Comforts’ Yaacov Brenenson in the release. “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.”
The Marcus & Millichap source added that multifamily investment activity remains strong throughout Los Angeles, with 2025 focused on more of the same.
“Despite the regulatory environment and rising operational costs, rents and investments are set for a strong year, fueled by resilient demand and tightening supply,” the source said.
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Brokers
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Remax Professionals
Re/Max Real Estate Professionals | New York
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Jared Ennis
Central CA Commercial | California
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Rick Recckio
Recckio Real Estate & Development
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Eamonn McConnell
Avison Young - CA - ON - Greater Toronto
Lenders
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Essex Property Trust, Inc.
California
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Josh A
California
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Bob Tuteur
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Andrew Schildcrout