Glendale Multifamily Property Sells for $290 Million
This post was written by Hannah Madans for LABusinessJournal.com and originally published on 4/26/2021
Next on Lex, a 494-unit multifamily property in Glendale, has sold for $290 million.
The site also includes roughly 8,000 square feet of ground-floor retail.
The California Community Housing Agency purchased the property at 275 W. Lexington Drive from Cypress Equity Investments.
Neither company responded to requests for comment.
The property was 92% leased at the time of the off-market sale, according to CoStar Group Inc. It was built in 2019 by local developer Century West Partners.
The California Community Housing Agency also recently purchased the Brio apartments in Glendale for $110 million.
The Brio complex, located at 546 W. Colorado St., has 205 units and was built in 2013. It was sold by Sequoia Equities Inc.
CCHA is a state agency that was established in 2019. Catalyst Housing Group acts as an asset manager for the agency.
The Next on Lex and Brio acquisitions represent Catalyst’s expansion into Southern California.
Catalyst is “focused on affordably and sustainably housing our essential middle-income workforce,” Jordan Moss, founder of Catalyst Housing Group, said in a statement.
He added that the acquisitions would provide residents with rent-restricted housing and protect people from being displaced.
“We are excited to take this step and increase housing opportunities for middle-income households. As a mayor and advocate for affordable housing, I am looking forward to seeing this approach take shape in Glendale,” City Councilmember Vrej Agajanian, who was mayor of Glendale at the time of the sale, said in a statement.
Current Glendale Mayor Paula Devine added that rent has outpaced income, which has been felt by low-income and middle-income households.
“This model emphasizes good, practical ideas to help protect a part of our existing population who cannot afford rent, but do not qualify for assistance,” she said in a statement.
Next on Lex and the Brio aren’t the only recent sales in L.A. County where the owner is seeking to provide middle-income housing.
Waterford Property Co. and the California Statewide Communities Development Authority recently purchased a 216-unit luxury apartment community in Long Beach for $120 million. The property, named the Oceanaire, is located at 150 W. Ocean Blvd.
Waterford and the CSCDA plan to convert the complex into middle-income housing, with Waterford serving as the property administrator.
It’s part of a workforce housing finance program that CSCDA started last year. The program uses tax-exempt bonds to finance multifamily acquisitions.
Glendale has seen interest from other property owners as well.
Brentwood-based JRK Property Holdings Inc. acquired Harrison Glendale, a 164-unit luxury apartment complex, for $90.7 million, earlier this year.
The complex is located at 318 W. Wilson Ave., one block from the Glendale Galleria and The Americana at Brand shopping centers.
The Harrison was 96% leased at closing. In addition to multifamily units, it has a central courtyard with a pool, park and barbecue area; a two-story fitness center, yoga studio; club room; and dog run.