West Coast Luxury Rental Portfolio on Block
A joint venture is marketing six new luxury apartment properties in Los Angeles and Seattle.
The 2,126-unit portfolio, valued at roughly $1 billion, is being pitched as a way to quickly gain scale in two of the West Coast’s hottest residential markets. The estimated value works out to $470,000/unit.
The owner, which prefers to sell the portfolio intact, is a partnership between Holland Partner Group of Vancouver, Wash., and the U.S. arm of Sekisui House, one of Japan’s biggest homebuilders. Eastdil Secured has the listing.
The properties — three in downtown Los Angeles and three in Seattle — were completed in the past two years. Two are stabilized, and the others are in various stages of lease-up. The properties include nearly 68,000 square feet of retail space.
The largest is the 606-unit Sofia Los Angeles, encompassing two seven-story buildings at 1120 West Sixth Street. Its apartments range from studios to three bedrooms and average 831 sf. Features include stainless-steel appliances, washer/dryers and patios or balconies. Among the amenities are a speakeasy, a co-working area, two pools, several club rooms and a fitness center. There’s also 28,000 sf feet of retail space occupied by Grocery Outlet, Chipotle and Starbucks.
The complex is a half-mile from the Seventh Street/Metro Center Station and within walking distance of the Financial District, the L.A. Live entertainment complex and the FIGat7th open-air mall.
The Holland Partner team last year hired Eastdil to market Sofia Los Angeles, with pricing guidance of roughly $330 million, or $545,000/unit. It later decided to pull the listing and include the property in its portfolio offering.
The other two Los Angeles buildings are Grace on Spring and Griffin on Spring. The 28-story Grace, at 732 South Spring Street in the Fashion District, has 300 units with an average size of 892 sf. There’s also 7,600 sf of retail space. The 28-story Griffin, at 755 South Spring Street, has 275 units that average 915 sf, plus 9,100 sf of retail. Both properties have units ranging from studios to three bedrooms, as well as some penthouses. Both have a rooftop lounge, a fitness center and a resort-style pool and spa with a sun deck.
Two of the Seattle properties — the 461-unit Kiara and the 275-unit Chroma — are in the booming South Lake Union neighborhood.
The 41-story Kiara, at 111 Terry Avenue North, has units ranging from studios to three bedrooms, as well as penthouses. The property has 17,000 sf of retail space. Amenities include a rooftop terrace, a club room, a game room and a “sports book” with nine television screens.
The seven-story Chroma, at 1212 Harrison Street, has units with 1-2 bedrooms as well as a roof deck and a fitness center. It’s the only property in the portfolio without retail space.
The other Seattle property is the 209-unit Perry, at 1001 Minor Avenue in the First Hill neighborhood. The 17-story building’s apartments range from studios to two bedrooms. Amenities include a rooftop lounge with views of the city and a fitness room. There is 5,700 sf of retail space.
The Sofia Los Angeles and the Chroma are the two stabilized properties.
Holland Partner Group, which was founded in 2001, develops residential, office and retail properties. Sekisui House set up its U.S. arm, North America Sekisui House of Arlington, Va., in 2010.