StarPoint Properties LLC acquired a portfolio of multifamily properties located in the Greater Los Angeles area.
The total value of the transactions was $86 million.
The properties, which comprise 10 buildings, are located in Los Angeles (one building), Granada Hills (1), Van Nuys (2), North Hollywood (3) and Canoga Park (3).
StarPoint Properties purchased the portfolio from three different investors. The three class B buildings and seven class C buildings range from 42 to 152 units, and the portfolio was approximately 95 percent occupied at the time of sale.
“Due to deferred maintenance on most of the buildings, each of the properties provided a great opportunity for renovation and repositioning,” said Paul Daneshrad, CEO/president of StarPoint Properties. “We will spend about $5.3 million to renovate the portfolio, which will help bring rents up to market value.”
According to Daneshrad, very few of the properties have been renovated in the last 20 to 30 years. Improvements will vary among the portfolio’s 705 units, which will receive new plumbing, lighting, cabinets, carpet and countertops. The exteriors of the buildings will get facelifts as well, including new sign packages, landscaping, hardscaping and paint.
Renovations will begin in November and continue as tenants move out for the next two to three years. After completion, average rents will increase by approximately 28 percent.
Los Angeles-based StarPoint Properties LLC specializes in the acquisition, re-development and re-positioning of investment properties in markets nationwide.