The larger of the two properties is a three-story 60-unit building built in 1924. The building, which features single and one-bedroom units ranging in size from 500-800 square feet, is located in the Koreatown section of Los Angeles.
Cresta has also acquired a 21-unit building located near Franklin and La Brea Avenues in the heart of Hollywood. Built in 1955, the two-story complex features single, one- and two-bedroom apartments ranging in size from 800-1000 square feet.
The transactions are part of Cresta Properties plan to double its multifamily portfolio by year end through the acquisition of small- to medium-sized opportunistic and value add projects in both primary and secondary markets throughout LA County.
In the past six months, Cresta has closed on eight multifamily transactions representing 210 units with an aggregate value in excess of $30 million. According to Cresta Principal Reuben Robin, the firm has an additional $15 million under contract.
“We employ a value-added investment strategy to identify properties that are under the radar for most investors and that with proper management, restructuring or redevelopment can be profitably repositioned back into the market,” said Robin. “We see demand for rental units in Los Angeles in general, and in our particular niche specifically, staying strong for several years. With access to more than $100 million in capital, we are aggressively in the market.”
Both properties, which are collectively 96% percent leased, will be managed by the Property Management Division of Los Angeles-based TRG Real Estate Services.