$39M Takes 356-Unit Complex

LONG BEACH, CA-An investment partnership based in Los Angeles has acquired the 356-unit Southwood Gardens apartments from a Southern California-based seller for $38.5 million, according to Marcus & Millichap.

Alex Mogharebi of the Ontario office of Marcus & Millichap, who represented both the buyer and the seller, notes that the deal closed at a cap rate of 7.5% and a price of $106 per sf. The property is at 5601 Paramount Blvd. It was constructed in 1963 and has been well maintained with little deferred maintenance, Mogharebi says. The apartment complex comprises 362,650 sf on 8.6 acres in a landscaped setting that is close to shopping, transportation and other services. The 356 units include 77 one-bedroom apartments, 221 two-bedroom units, and 58 three-bedroom apartments. The units range in size from 700 to 1,300 sf, with rents that range from $735 to $1,285. At the time of the sale, the complex was 97% occupied.