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| Towne at Glendale Apartments, 1717 North Verdugo Road, Glendale, CA |
Glendale, CA –
Institutional fund manager Interstate Equities Corporation (IEC) has acquired a
126-unit multifamily property in Glendale, California for $54.2 million. This
is the seventh acquisition to date within the firm’s IEC Institutional Fund
III, L.P., a fully discretionary, $200 million commingled fund targeting
value-add multifamily investments throughout coastal California.
“It is rare to find an
asset of this quality, vintage and size in what we feel is one of the most
attractive markets on the west coast,” says Brendan Gibney, an acquisitions professional at IEC.
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| Adrienne Barr |
Towne at Glendale is
located at 1717 N. Verdugo Road in Glendale, California. Adrienne
Barr and Shane Shafer at Hendricks Berkadia brokered the transaction. The
acquisition loan was arranged by Peter
Smyslowski at Holliday Fenoglio Fowler, L.P (HFF) and provided by CIT Bank,
N.A.
The apartment community
was built in 1965 and renovated in 2007 to condo specifications, featuring
high-end finishes, central air conditioning and amenities that are
characteristic of institutional-quality assets.
Currently known as Verdugo Village, IEC will rebrand and rename the
property Towne at Glendale.
“The property’s unique
configuration of two and three-bedroom units, prime location in a durable
submarket made this a strong acquisition that fits squarely into IEC’s
investment strategy,” Gibney says.
Gibney notes that Glendale, one of
the tri-city submarkets of Los Angeles County’s San Fernando Valley, is poised
for economic growth, boasting strong school districts, top employers, new
residential developments and premier retail amenities including the Americana
at Brand.
“As a firm, we have been investing
in Glendale for several decades and are selectively looking to expand our
presence in this region,” Gibney explains. “This acquisition is well-aligned
with our strategy of targeting apartment communities that are located in
growing and resilient markets of California.”
Peter Casey,
a Director at IEC, adds that the strength of the market and the asset’s
long-term growth potential generated strong competition for this acquisition.
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| Brendan Gibney |
“There were many bids for
this asset,” says Casey. “As one of the few funds competing for this deal, we
were able to differentiate ourselves through our surety of close and access to
fully discretionary capital.
"Based on
our proven track record and expertise in the Glendale market, we emerged as the
right buyer in this transaction and moved quickly to complete due diligence in
15 days.”
Casey explains that while IEC’s
acquisition pipeline is strong, the company has been a net seller in 2016,
selling five units for every one purchased this year.
“While we continue to seek
opportunities to expand our multifamily portfolio, we are also being
increasingly selective in the investments we pursue,” says Casey, who notes
that IEC typically closes on less than two percent of the deals it
underwrites. “As net sellers, we view
the increased competition in the current investment market as an advantage that
provides us with greater liquidity and a sound exit strategy. Further, as selective buyers, we are able to
better position ourselves to focus on opportunities that fit squarely into the
historical acquisition parameters that have created the track record.”
The Towne at Glendale is
currently 96 percent occupied, and will undergo a series of capital
improvements to enhance and expand its existing amenities. Planned renovations include a major
redevelopment of the main lobby and entrance, the installation of a new fitness
center, upgrades to the existing onsite movie theater, as well as the addition
of onsite storage for residents.
“Through management
improvements and strategic renovations, we plan to increase operational
efficiencies and ultimately improve the overall resident experience at the
property,” confirms Gibney.
For a complete copy of the company’s news release,
please contact:
Katie Kea or Jenn Quader
Brower, Miller & Cole
(949) 955-7940
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