Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Wednesday, 09 May 2018

Universe Holdings Buys Apartment Portfolio in San Fernando Valley

Written by 
Rate this item
(0 votes)

Universe Holdings has paid $22.75 million, or nearly $185,000/unit, for a portfolio of nine apartment properties with 123 units in the San Fernando Valley near Los Angeles.

The Los Angeles investment manager, which pursues older, class-B apartment properties that could be upgraded, bought the portfolio from an individual who was represented by Investment Real Estate Associates of Encino, Calif. The individual had assembled the portfolio over the past 55 years.

Universe funded its purchase with $13 million of Freddie Mac financing that Capital One had written under the agency's small-balance program.

Six of the properties in the portfolio are in Van Nuys: 6461 Kester Ave., with 15 units; 5840 Hazeltine Ave., with 10 units; 6935 Woodman Ave., with nine units; 14108 Gilmore St., with six units, and 14129 and 14133 Gilmore St., with a total of 12 units. Two are in Panorama City: the 18-unit 8924 Van Nuys Blvd. and 37-unit 8132 Langdon Ave., while one is in North Hollywood, the 16-unit 6502 Vineland Ave.

Each of the properties was constructed between 1954 and 1978. They have gated or otherwise secure entry, on-site parking, swimming pools and laundry facilities.

Universe plans to invest another $3.3 million on improvements to the portfolio, whose monthly rents average $1,100/unit. "We know these rents are significantly below market averages," explained Henry Manoucheri, chairman and chief executive of Universe. "As we commence with property improvements, (we) expect to see them rise over time." The portfolio's units are subject to rent-control rules.

Universe, which Manoucheri formed in 1994, has invested in properties totaling more than 6,500 units.

Comments? E-mail Orest Mandzy, or call him at (267) 327-4281.



weekly-call-to-action

“The Weekly”

“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

  • Breaking mortgage, CMBS, and REIT news

  • Quarterly league tables with rankings of B-piece buyers, book runners, and lenders

  • Industry moves and changes in “The Insider“

Additional Info

  • Syndicate to Realpoint: No
  • States: California
  • Sector: Multifamily
  • Subject: Property Acquisitions (ACQ)
  • Private: No
Read 631 times Last modified on Friday, 17 August 2018

Data Digest

 

CMBS DELINQUENCY VOLUME

dqdataFP1

 

CMBS SPECIAL SERVICING VOLUME

sschartfp

Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

cppichart FP

 

 

CMBS 2.0 Spreads

AAAspreads

Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

  • Challenging Retail Environment Weights on REITs
    Mixed economic news is weighing on retail markets, pushing REIT performance down in 2015. This week, the National Retail Federation announced that back-to-school spending is expected to be down 9.3% in 2015. This news came on the heels of a report from the Commerce Department stating that retail sales declined 0.3%...
     
  • US REITs Feeling Effects from Turmoil in Greece and China
    International economic forces have taken center stage this week, affecting both US stock markets and REITs. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the eurozone drove markets down during the first half of the week. REITs fared better than the overall market...

  • What Does Increased Construction Mean for Apartment REITs?
    REITs so far this year have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That’s more than they raised during the previous five years. The massive volume shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark...
shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds
warehouse-backstage