Koto Estates Buys LA Luxury Multifamily for $72M
Koto Estates Co., LTD bought a luxury multifamily property in Torrance, California for $71.5 million.
Located in the South Bay region of Los Angeles at 25935 Rolling Hills Road, The Highlands features 121 rental units.
The luxury apartment community recently underwent a $16.5 million renovation, which included adding 14 accessory dwelling units.
The Highlands is within a several-minute drive of various retailers, entertainment, and dining venues. Additionally, beaches and coastlines can be found within a 10-15 minute drive.
South Bay's multifamily market is coming off a solid second quarter. For one, its 4.3 percent vacancy rate in the three months through June was one of the lowest in LA, according to a report from CBRE. Also, rent prices in the region have risen 1.4 percent quarter-over-quarter. And while net absorption reached 247 units, the figure is down five units in the year-to-date ending June.
CBRE represented Koto and the seller, Ocean Ten, LLC. Koto, based in Japan, has been a repeat client of the CRE giant.
"The South Bay resident base has been severely underserved in terms of high-quality rental housing," Priscilla Nee, executive vice president of CBRE said.
"The pent-up demand for assets like The Highlands has resulted in high occupancy and other notable multifamily fundamentals for investors, providing our client with the opportunity to drive post-stabilization rent growth."
Source: GlobeSt/ALM