Concord Capital Pays $79 Million for the 537-Unit Historic Genesis Collection, Plans Capital Improvements
Pictured above: The Langham
Concord Capital Partners paid $79 million for ownership rights to the five-property Genesis Collection, a vintage multifamily portfolio in Los Angeles. The 537-unit value-add acquisition is part of the Beverly Hills-based buyer’s strategy to buy, own and manage opportunistic and cash-flowing multifamily properties located throughout the supply-constrained West Coast markets.
The portfolio consists of the following assets in the Koreatown and Hollywood submarkets:
- The 51-unit Fontenoy at 1811 Whitley Ave. (built in 1928)
- The 181-unit Langham at 715 Normandie Ave. (built in 1927)
- The 61-unit Sir Francis Drake at 841 Serrano Ave. (built in 1929)
- The 74-unit Piccadilly at 682 Irolo St. (built in 1929)
- The 170-unit Park Wilshire at 2424 Wilshire Blvd. (built in 1929)
Concord Capital had been actively doing business in Los Angeles for over two decades when the company shook hands with private equity seller Midwood Investment & Development to put the Park Wilshire under contract for $25 billion. “When that news circulated, it drew the attention of Seligman, who invited us to preempt the marketing process for their multifamily portfolio,” Jonathan Fhima, Concord Capital Chief Investment Officer and Managing Principal, told ApartmentBuildings.com.
The Seligman Group agreed to sell its properties to Concord Capital for $54 million. “We believe we’ve assembled the single most impressive portfolio of 1920s vintage Art Deco multifamily architecture on the West Coast and possibly in the country,” Fhima added.
Kitty Wallace at Colliers represented Midwood, while Kidder Mathews’ Janet Neman handled the transaction on behalf of Seligman. Arbor Realty Trust provided acquisition financing through a $60.5 million senior loan, supplemented by approximately $30 million in equity.
The portfolio’s occupancy was 87% at closing, providing an attractive upside for Concord Capital. The new owner will implement a CapEx campaign to improve common area amenities and cosmetic appeal.
“We want to create a product that can really appeal to this generation’s Class A renter demographic,” Fhima said. Doing so requires that the fitness centers, pools and rooftop decks are appealing and engaging while paint colors, floor coverings and fixtures are brought up-to-date. “At the same time, we appreciate that the architectural elements of these buildings remain largely in their original state,” Fhima commented. “We don’t want to do anything to impair their historic character.”
Meanwhile, Fhima said that Concord Capital has another multifamily property under contract in Koreatown for $52 million. “This is a niche we understand deeply, and we are increasingly becoming the go-to buyer for owners in this category,” he added. “When owners of historical multifamily properties in Los Angeles are ready to sell, we want to be the first call they make.”
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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
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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