Multifamily - Debt, Sale

Northmarq completes $220 million sale and $121 million financing of 669 market-rate/affordable housing units in LA for Avanath Capital Management

LOS ANGELES, CALIFORNIA (August 16, 2022) — Vince Norris, Jim Fisher and Mike Smith, Bryan Schellinger and Shane Shafer, collaborated to complete the $220 million sale of the Baldwin Village apartments, commonly known as Santa Rosalia and Santo Tomas. 

At 669 units, the sale represents the largest single asset sale in Los Angeles County this year. The sale is the 10th largest pre-1978 community in the city of Los Angeles and was purchased using a unique structure that allows the new owners to provide the residents of the Baldwin Village community a long-term affordable housing solution. The sale to Irvine-based Avanath Capital Management represents their largest investment in Los Angeles to date. The seller, Calabasas-based Upside Investments, was looking to transition the property to an operator that would continue to be able to provide a solution to Los Angeles’ housing crises. 

“Avanath recognized the potential opportunities that exist with the property as they combine market rate and Income Restricted Affordable housing to the community,” explained Norris, managing director of investment – Los Angeles. “With more than one-million square feet of land, the future of this unique asset will serve as a model for large-scale housing in the city.” The submarket is undergoing an investment boom, with six massive projects within walking distance and over $20 billion in investment capital deployed within a five-miles radius that will create further demand to live in this area.

Joe Giordani, Scott Botsford, and Brendan Golding of Northmarq’s Newport Beach debt/equity team secured acquisition financing of $121 million for the property through Fannie Mae. “We were able to push our Fannie Mae affordable group to underwrite collections aggressively and maximize loan proceeds for Avanath. The team secured attractive full-term interest only floating rate debt with an aggressive spread and proceeds of 55 percent loan to purchase price,” said Giordani. “This was a great team effort—from our internal Fannie team to the collaboration with our investment sales team. The end result is a great loan and smooth closing for our client.”  

Santa Rosalia Apartment Homes: The 2-story/326-unit multifamily property (originally built in 1948) is located at 4220 Santa Rosalia Drive in Los Angeles, California. The property is conveniently situated for commuters, being near numerous transit options/subways, commuter rails, major roadways (such as I-105 and I-10), and airports. Residents have access to three shopping centers within less than a mile, as well as five parks, including Kenneth Hahn State Recreation Area (2.1 miles) all within 5.4 miles. 

Community amenities include: Package service, laundry facilities, controlled access, maintenance on site, property manager on site, gated community, and courtyard. Apartment amenities include: High-speed internet access, heating, ceiling fans, smoke-free environment, cable ready, tub/shower, dishwasher, disposal, stainless steel appliances, pantry, kitchen, microwave, range, and refrigerator. 

Santo Tomas Apartment Homes: The 2-story/343-unit multifamily property (originally built in 1948) is located at 4318 Santo Tomas Drive in Los Angeles, California. The property, though officially in Baldwin Village, is part of the larger Crenshaw Neighborhood. The area is home to the celebrated Hyde Park, which is referred to as “the heart of African American commerce in Los Angeles.” Cultural opportunities abound for residents, such as “Destination Crenshaw,” a 1.3-mile-long outdoor art and culture exhibit featuring African American representation from Los Angeles. The neighborhood also benefits from easy access to the LAX metro system, with lines running to the Los Angeles International Airport. 

Community amenities include: Package service, laundry facilities, controlled access, maintenance on site, property manager on site, gated community, and courtyard. Apartment amenities include: High-speed internet access, heating, ceiling fans, smoke free community, cable ready, tub/shower, dishwasher, disposal, stainless steel appliances, pantry, kitchen, microwave, range, refrigerator, hardwood floors, carpet, vinyl flooring, dining room, family room, walk-in closets, window coverings, and maintained lawn. 

Northmarq is an industry-leading capital markets resource for commercial real estate investors, offering seamless collaboration with top experts in debt, equity, investment sales and loan servicing. We combine industry-leading capabilities with an open, flexible structure, enabling our team of seasoned professionals to create innovative solutions for clients. Our solid foundation and entrepreneurial approach have built an annual transaction volume of over $30 billion, and loan servicing of nearly $70 billion.