Multifamily Closings Include Distressed Debt
Taken from Globe Street
By Bob Howard
LOS ANGELES-One apartment investment group has acquired 26 units via a distressed debt deal, another averted the risk of taking out new debt by assuming a Freddie Mac loan and a third engineered a last-minute lender switch as a spate of multifamily closings reflect the changes in the apartment investment market of late. The properties that sold included a 26-unit complex at 920 N. Wilcox in Hollywood, a 40-unit property in Hollywood and two in Valley Glen, including the one that involved the last-minute lender switch.
The distressed debt deal was executed by Lion Real Estate Group, a privately held real estate investment firm that was formed in early 2008 to focus on value-add and opportunistic multifamily properties in Los Angeles. It completed an all-cash acquisition of two loans on the property at 920 N. Wilcox in an off-market deal.
Lion bought the senior and junior loans on the property for slightly more than $4 million, representing just over half of the original purchase price of $7.25 million when the complex last sold in 2007. The complex comprises 26 non-rent controlled units, including one studio and 25 two bedroom/ two bathroom units.
