Multifamily Investors Snatch Up LA’s Top Deals in 2024
Multifamily Sales Volume Plunges
Sales volume for the multifamily sector in Los Angeles County dropped in the second half of 2023 and has yet to recover. According to Colliers, a total of $3.1 billion worth of multifamily deals took place across the Greater Los Angeles market by the end of the third quarter of 2024, a 3% decline from the same period the previous year.
A New "Mansion Tax" and High Cost of Borrowing Dampen Sales Activity
The 5.5% "mansion tax" on deals over $10.3 million, combined with the high cost of borrowing over the last two years, have contributed to the decline in sales activity, according to landlords and brokers.
Top 10 Deals of 2024
Here are the top 10 multifamily deals in Los Angeles County in 2024:
888 South Hope Street | FPA Multifamily | $186 million
FPA Multifamily bought CIM Group’s 525-unit luxury high-rise apartment building in Downtown LA for $186 million, or $354,000 per unit. The property was on the market for eight months before FPA acquired it.
Reveal Playa Vista | DivcoWest | $122 million
DivcoWest bought Clarion Partners’ 214-unit apartment complex in Playa Vista for $122.1 million, or $570,000 per unit. The property was originally purchased by Clarion in 2018 for $117.5 million.
The Gabriel | Prime Residential | $115 million
Prime Residential acquired the 312-unit multifamily development in North Pomona from CP Capital and Greystar for $115 million, or $368,590 per unit. CBRE provided a $74.8 million loan for the acquisition.
Silva | Silver Lake | $110 million
Cityview and Wafra teamed up to buy the 221-unit apartment complex in Silver Lake for $110.3 million, or $498,869 per unit. The property was originally purchased by Gemdale USA in 2016.
Lofts at Noho Commons | GPI Companies | $92.5 million
GPI Companies bought the 292-unit apartment complex in North Hollywood for $92.5 million, or $316,781 per unit. The property was originally purchased by MWest Holdings and KBS Strategic Opportunity REIT II in 2016.
Paragon at Old Town | SCS Development | $87 million
SCS Development acquired the 163-unit apartment complex in Monrovia from Sequoia Equities for $87.3 million, or $535,276 per unit.
Arrive Wakaba | FPA Multifamily | $86 million
FPA Multifamily bought the 240-unit apartment building in Little Tokyo from JPMorgan for $86.1 million, or $358,750 per unit.
Véda | Abacus Capital Group | $72.5 million
Abacus Capital Group acquired the 236-unit apartment complex in Sherman Oaks from Alliance Residential for $72.5 million, or $307,203 per unit.
The Highlands | Koto Estate | $71.5 million
Koto Estate Company bought the 121-unit apartment complex in Torrance from Ocean Ten for $71.5 million, or $590,909 per unit.
Cobalt | Helio Group | $67.7 million
Helio Group acquired the 135-unit apartment complex in Culver City from Greystar for $67.7 million, or $502,000 per unit.
Conclusion
Multifamily investors were active in Los Angeles County in 2024, snapping up several high-profile deals despite market uncertainty. The 5.5% "mansion tax" and high cost of borrowing have dampened sales activity, but investors remain optimistic about the sector’s long-term prospects.
Frequently Asked Questions
Q: What was the largest multifamily deal in 2024?
A: FPA Multifamily’s acquisition of 888 South Hope Street for $186 million was the largest multifamily deal in 2024.
Q: Which investor had the most deals in 2024?
A: FPA Multifamily had two of the top 10 deals in 2024, including 888 South Hope Street and Arrive Wakaba.
Q: What was the average price per unit for multifamily deals in 2024?
A: The average price per unit for multifamily deals in 2024 was around $400,000.
Q: What is the current state of the multifamily market in Los Angeles County?
A: The multifamily market in Los Angeles County has experienced a decline in sales volume in the second half of 2023 and has yet to recover. However, investors remain optimistic about the sector’s long-term prospects.
