Waterton Paid $167 Million for Woodland Hills Apartments

Introduction to Waterton’s Recent Acquisition

Waterton paid $167 million for the Woodland Hills Apartments, a significant investment in the Los Angeles real estate market. The acquisition includes a 522-apartment complex, which was previously owned by AMLI Residential. The property, now known as The Kitt at Warner Center, features luxurious amenities such as a resort-inspired pool and spa, al fresco dining, and an outdoor fireplace.

Background on the Property

The complex, located at 21200 Kittridge Street, was developed by AMLI Residential almost two decades ago. Waterton, a value-add investor based in Chicago, plans to renovate the one-, two-, and three-bedroom apartments and revamp common areas. According to Kol Rath, vice president of acquisitions at Waterton, the property’s value-add upside was a major factor in the decision to purchase. The majority of units are in original condition from 2007 or have been partially upgraded over the years, presenting an opportunity for renovation and improvement.

The Warner Center Master-Planned Community

The Kitt at Warner Center is situated within the Warner Center, a master-planned community where billionaire owner of the Los Angeles Rams, Stanley Kroenke, has proposed a $10 billion development. This prime location is likely to attract potential renters and increase property values in the area. Woodland Hills has a relatively low multifamily vacancy rate of 4.3 percent, with an average rent per apartment of $2,788, according to a second-quarter CBRE market report.

Market Trends and Comparable Sales

The recent sale of The Kitt at Warner Center is one of the largest multifamily transactions in the Los Angeles market. The highest multifamily sale price for the second quarter was $126 million for a 235-unit apartment building in Glendale. Waterton’s purchase of the Woodland Hills Apartments demonstrates the company’s confidence in the Los Angeles market and its potential for growth and appreciation.

How much did Waterton pay for the Warner Center?

It shelled out $167.4 million for the Woodland Hills apartment complex, property records reveal.

Waterton purchased the 522 apartments from AMLI Residential last month, but a price was not disclosed. 

AMLI Residential developed the property almost two decades ago. The complex at 21200 Kittridge Street is now called The Kitt at Warner Center and boasts a resort-inspired pool and spa, al fresco dining and an outdoor fireplace. The value-add, Chicago-based investor plans to renovate the one-, two-, and three-bedroom apartments and revamp common areas. 

“What made it attractive was primarily the value-add upside. The vast majority of units are in either original condition from 2007 or have been partially upgraded over the years. The common areas and amenities can be reconfigured and improved,” Kol Rath, vice president of acquisitions at Waterton, said when the deal was announced. The company, founded and helmed by David Schwartz, owns thousands of apartments in Los Angeles. 

The Kitt at Warner Center is within a master-planned community, the Warner Center, where the billionaire owner of the Los Angeles Rams, Stanley Kroenke, has proposed a $10 billion development. 

Woodland Hills has a 4.3 percent multifamily vacancy rate, and commands $2,788 average rent per apartment, according to a second-quarter CBRE market report. That’s on par with typical vacancies and rents throughout the Los Angeles market. The highest multifamily sale price for that period was $126 million for a 235-unit apartment building in Glendale, according to the report. 

Waterton has been pretty active, on the buy and sell side. The company recently began marketing two 14-story apartment buildings in Chicago. Waterton paid about $82 million for the complex, called Grand Central, two years earlier. In another deal, last year Waterton purchased a San Francisco complex encompassing seven six-story buildings from Brookfield for $177.5 million.

AMLI last summer sold a 325-unit apartment complex for around $89 million in South Florida.

Conclusion

In conclusion, Waterton’s acquisition of the Woodland Hills Apartments for $167 million demonstrates the company’s confidence in the Los Angeles market and its potential for growth and appreciation. The property’s value-add upside, prime location, and luxurious amenities make it an attractive investment opportunity. As the Los Angeles market continues to evolve, it will be interesting to see how Waterton’s investment in The Kitt at Warner Center performs in the coming years.

FAQs

Q: How much did Waterton pay for the Woodland Hills Apartments?
A: Waterton paid $167 million for the Woodland Hills Apartments.
Q: What is the name of the apartment complex?
A: The apartment complex is now known as The Kitt at Warner Center.
Q: Who was the previous owner of the property?
A: The previous owner of the property was AMLI Residential.
Q: What are Waterton’s plans for the property?
A: Waterton plans to renovate the one-, two-, and three-bedroom apartments and revamp common areas.
Q: What is the average rent per apartment in Woodland Hills?
A: The average rent per apartment in Woodland Hills is $2,788, according to a second-quarter CBRE market report.