All twelve 31 LA County apartments trade for $ 80 million

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Owners of a 200-unit property in a suburban city east of Los Angeles County made an 87% profit about five years after first buying it.

Benedict Canyon Actions sold the Twelve31 Apartments to West Covina for $ 80.4 million to a Los Angeles-based private investor Ron Nasch in a 1031 exchange. Ownership records show the company paid $ 43 million to acquire the complex in September 2016.

CBRE announced the sale and said the seller recently completed a $ 4.9 million renovation on the complex in 1231 Francisquito Avenue West.

Twelve31 Apartments consist of one, two and three bedroom units averaging 873 square feet. The property also has a swimming pool and spa, as well as a fitness center. Online ads on the site show rent of $ 2,295 to $ 2,925 per month.

“The town of West Covina has experienced significant rental growth, averaging 6.32% per year over the past six years,” said CBRE’s Stewart weston, who, with a colleague dean pike perch represented the seller. “We anticipate continued growth in this submarket as tenants continue to migrate to the San Gabriel Valley in search of affordable housing and the abundance of available employment opportunities.”

USC Casden’s Latest Economic Forecast projects triple-digit dollar rent increases over the next two years for multi-family properties across Southern California, with the largest increases reaching suburban markets outside of urban centers.

Nasch, president of Fairmont Management, has other multi-family properties in the area. His business paid off $ 60 million for a 115-unit property at Glendale in October 2020 and manages five other properties, according to its website.

Benedict Canyon Equities and Fairmont Management were not immediately available for comment.

Gregory Cornfield can be reached at [email protected].


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