The price is one of the highest in the San Gabriel Valley to date this year.
PASADENA, Calif., Oct. 30, 2017 – Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI) announces the sale of LUXE, a 131-unit luxury multifamily property in Pasadena, California. The $57.2 million sales price equates to $436,641 per unit. The cap rate is 3.7 percent.
“LUXE is one of the premier multifamily assets in the San Gabriel Valley,” says Greg Harris, executive managing director. “Purchased by an international investor making their first purchase in the United States, the property is supported by strong market trends, including high demand for luxury apartment homes, a significant affordability gap to home ownership and a scarcity of new supply.”
Harris, along with Kevin Green and Joseph Grabiec, senior directors, represented the seller and developer, Agoura Hills, California-based Amcal Equities LLC. Harris, Green and Grabiec also procured the buyer, a private investor based in China.
“Pasadena has experienced rent growth of nearly 12 percent since 2014, and rent growth is projected to increase nearly 3 percent annually,” adds Grabiec. “The average vacancy rate is expected to hold steady at around 3.6 percent and the city’s average annual household income, which is already strong, is projected to increase 17 percent to $122,796 by 2021.”
“Centrally located in Pasadena and adjacent to a Metro Gold Line station in a heavily supply-constrained market, LUXE delivers a rare pedestrian- and mass transit-oriented location that appealed to the renter base, as evidenced by its rapid lease-up and rent growth trajectory,” comments Green.
Built in 2016 on nearly two acres, LUXE’s studio, one- and two-bedroom apartments average 731 square feet. The property is located at the corner of E Walnut Street and Allen Avenue, near access to State Route 134 and the 110 and 210 freeways, which provide residents with easy access to major employers in the area.