April 16, 2019
Park Western Estates, a 216-unit garden-style multifamily property in San Pedro, CA, traded hands for $62.9 million, which worked out to at a record 2.72% cap rate on in-place operations. The seller was California-based Park Western Apartments, while the buyer was another California firm, SDG Housing Partners.
Berkadia’s Bruce Furniss and Joe Leon completed the sale on behalf of the seller.
Furniss says, “Forty-eight percent of residents at Park Western Estates already receive assistance from a project-based Section 8 subsidy, which will now go through HUD’s mark-up-to-market program. This purchase will also increase affordability on the remaining tenancy, which is currently restricted per LA City’s Rent Stabilization Ordinance, making the entire community affordable to residents living below 60% of Area Median Income (AMI).”
The buyer plans to invest $50,000 per unit in a major rehabilitation of the 50-year old property at 1301 West Park Western Dr.
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