AvalonBay Unloads 156-unit North Hollywood Apartments for $10M Less Than it Paid in 2016

AvalonBay Communities, a major player in multifamily real estate in the United States, has sold a significant asset located in the North Hollywood neighborhood of Los Angeles’ San Fernando Valley.

Transaction Details

The property, AVA North Hollywood, was purchased by Prime Residential for $62.1 million, translating to approximately $393,077 per unit. This transaction was facilitated by Institutional Property Advisors (IPA), a division of Marcus & Millichap. AvalonBay had originally acquired the property in September 2016 for $72.1 million.

Property Features

Built in 2015 at 5077 Lankershim Boulevard, AVA North Hollywood comprises 156 units and includes 11,000 square feet of ground-floor retail space. The amenities offered include a swimming pool, spa, clubroom, sky deck, leasing office, café, and business center. The retail area is fully leased, hosting four eateries, a Pilates studio, and a massage and spa center.

Market Insights

According to Kevin Green, executive managing director of investments at IPA, the North Hollywood area experienced significant development prior to COVID-19. Although initial rent growth was modest, the market is now gaining momentum. Green, along with IPA’s Joseph Grabiec and Gregory Harris, represented AvalonBay in the sale.

Continuing Presence in Los Angeles

AvalonBay, based in Arlington, Virginia, continues to be a dominant owner of apartment properties in Los Angeles, maintaining numerous locations throughout the region. Prime Residential also holds a considerable portfolio in L.A., including Park La Brea, the largest apartment complex on the West Coast.