Los Angeles, Calif., Nov. 14, 2011 – SALE: Pacoima property's $69 million sets high point for Los Angeles this year.

A 430-unit affordable-housing apartment complex in Pacoima traded hands for $69 million this month, in the largest sale of its kind in Los Angeles County this year.  Berkeley developer Affordable Housing Associates bought the 12700 Van Nuys Blvd. property known as Pierce Park from Steadfast Cos., an Irvine multifamily real estate investment firm.

As an affordable-housing complex, the fully occupied property receives federal housing-assistance subsidies and is provided some tax relief. This helped to boost the property's value and make it the largest sale of a Class C multifamily property in the county this year.

The units range from one to four bedrooms.  The complex stretches over nine acres and includes amenities such as a children's learning center, a playground, a full-size basketball court and a courtyard.

The buyer intends to operate the property as it is, according to Ron Harris, Marcus & MiIlichap's Institutional Property Advisors executive vice president, who brokered the deal for both sides with colleague Joseph Smolen.

"Pierce Park presented the buyer with a unique opportunity to purchase a sizable property in the Los Angeles market,"' said Harris.  "With the stability of a long-term rent subsidy contract the buyer will be able to maintain the property as a much needed affordable housing apartment project for many years to come.”

The sale breaks down to a little more than $160,000 a unit, which compares favorably with the May sale of a 62-unit multifamily complex also in the city. These apartments sold for $8.5 million, or $137,000 a unit.

Written by Jacquelyn Ryan
Los Angeles Business Journal
November 14, 2011