Apollo Real Estate Advisors recently acquired 24 multifamily rental properties in various submarkets of Los Angeles, with plans to maintain them as rental housing.
With a total acquisition value of approximately $83 million, the properties are located in the Silverlake, Westlake, Koreatown, Hollywood, West Hollywood and Los Feliz submarkets, and comprise 1,002 primarily rent-controlled units. The apartments consist mostly of studios and one-bedrooms, ranging from 700 square feet to 1,000 square feet. The sellers were not disclosed.
Apollo, which invests in and co-develops projects throughout the country, plans to continue operating 900-plus units subject to the L.A. rent stabilization ordinance, said Dean Pentikis, Apollo partner who heads the firm’s West Coast operations, in a statement.
“We believe there is a real opportunity to provide quality affordable rental housing in L.A. for tenants who currently have few options in the areas where we are investing,” Pentikis said. “Consistent with what Apollo has done in certain New York markets, we expect to provide a better living experience, as many of these buildings have not seen reinvestment in years. We’re committed to long-term investment and growth in this market.”
He said Apollo has earmarked $20 million for capital improvements over the next five to seven years. Plans are to upgrade lobbies and common areas, landscaping and security, as well as roofs, facades and major building systems.