Marcus & Millichap Inc.
01/03/2025 | Press release | Distributed by Public on 01/03/2025 16:58
Marcus & Millichap Brokers $85 Million San Fernando Valley Multifamily Portfolio Sale
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Marcus & Millichap Brokers $85 Million San Fernando Valley Multifamily Portfolio Sale
January 03, 2025
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LOS ANGELES, Jan. 3, 2025 - Marcus & Millichap (NYSE: MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced today the all-cash sale of a 596-unit, 16-parcel multifamily portfolio in the San Fernando Valley. The portfolio sold for $85 million, or $142,617 per unit. The sale is the largest multifamily transaction in the San Fernando Valley in 2024 and the sixth-largest multifamily portfolio sale in Los Angeles County in 2024.
"The transaction showcases the resilience and strategic expertise required to close deals in today's challenging market," said Tony Azzi, executive managing director investments and leader of the Azzi Group of Marcus & Millichap in Los Angeles. "The sale also stands out for its scale and the innovative incorporation of a nonprofit partnership with National Community Renaissance (CORE), which delivered substantial financial benefits for the stakeholders and contributes to the expansion of affordable housing in Los Angeles." Azzi represented the sellers, Heitman LLC., Invesco LTD, and ETHOS Real Estate. The buyer, Material Comforts Inc., a Florida-based investment group, was procured by Rabbie Banafsheha, Kristen Sullivan, and Arteen Zahiri of Marcus & Millichap. The portfolio features a diverse mix of properties across Van Nuys, Panorama City, North Hills, and Canoga Park, with gross building areas ranging from 6,030 square feet to 160,858 square feet.
"The portfolio attracted significant interest, generating 28 offers after two highly attended open house events," said Banafsheha, first vice president investments of the Azzi Group of Marcus & Millichap. "A competitive 'best and final' process required all offers to close before the end of the year without contingencies, demonstrating how strategic execution and the collaboration of all parties involved can result in significant accomplishments within the industry."
Under the terms of the purchase agreement, National CORE will ensure that at least 50% of the residents earn under 80% of the Area Median Income (AMI), qualifying the owner for a property tax abatement. The collaboration between National CORE, Material Comforts Inc., and the Azzi Group of Marcus & Millichap exemplified how nonprofit expertise can be integrated into ownership structures to create sustainable housing solutions. "This approach not only delivered substantial financial benefits but also addressed critical community needs, such as affordable housing," Azzi added. "By leveraging creative deal structures, this transaction serves as a model for future collaborations between the public and private sectors, demonstrating how high-value transactions can succeed in challenging markets."
Yaacov Brenenson, president of Material Comforts Inc added: "This acquisition underscores the importance of persistence and partnership in today's market. While many are moving investments outside of California, we saw this as an opportunity to make a long-term investment in the future of Los Angeles. I want to thank our agents for their attention to detail during the process from start to finish. I was happy with their diligence on a transaction as complicated as this one."
"The transaction showcases the resilience and strategic expertise required to close deals in today's challenging market," said Tony Azzi, executive managing director investments and leader of the Azzi Group of Marcus & Millichap in Los Angeles. "The sale also stands out for its scale and the innovative incorporation of a nonprofit partnership with National Community Renaissance (CORE), which delivered substantial financial benefits for the stakeholders and contributes to the expansion of affordable housing in Los Angeles." Azzi represented the sellers, Heitman LLC., Invesco LTD, and ETHOS Real Estate. The buyer, Material Comforts Inc., a Florida-based investment group, was procured by Rabbie Banafsheha, Kristen Sullivan, and Arteen Zahiri of Marcus & Millichap. The portfolio features a diverse mix of properties across Van Nuys, Panorama City, North Hills, and Canoga Park, with gross building areas ranging from 6,030 square feet to 160,858 square feet.
"The portfolio attracted significant interest, generating 28 offers after two highly attended open house events," said Banafsheha, first vice president investments of the Azzi Group of Marcus & Millichap. "A competitive 'best and final' process required all offers to close before the end of the year without contingencies, demonstrating how strategic execution and the collaboration of all parties involved can result in significant accomplishments within the industry."
Under the terms of the purchase agreement, National CORE will ensure that at least 50% of the residents earn under 80% of the Area Median Income (AMI), qualifying the owner for a property tax abatement. The collaboration between National CORE, Material Comforts Inc., and the Azzi Group of Marcus & Millichap exemplified how nonprofit expertise can be integrated into ownership structures to create sustainable housing solutions. "This approach not only delivered substantial financial benefits but also addressed critical community needs, such as affordable housing," Azzi added. "By leveraging creative deal structures, this transaction serves as a model for future collaborations between the public and private sectors, demonstrating how high-value transactions can succeed in challenging markets."
Yaacov Brenenson, president of Material Comforts Inc added: "This acquisition underscores the importance of persistence and partnership in today's market. While many are moving investments outside of California, we saw this as an opportunity to make a long-term investment in the future of Los Angeles. I want to thank our agents for their attention to detail during the process from start to finish. I was happy with their diligence on a transaction as complicated as this one."
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About Marcus & Millichap, Inc. (NYSE: MMI)
Marcus & Millichap, Inc. is a leading brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services with offices throughout the United States and Canada. As of December 31, 2023, the company had 1,783 investment sales and financing professionals in over 80 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The company also offers market research, consulting and advisory services to clients. Marcus & Millichap closed 7,546 transactions in 2023, with a sales volume of approximately $43.6 billion. For additional information, please visit www.MarcusMillichap.com.