Mission Viejo-based Laguna Point Properties has closed on a $566 million multifamily portfolio in Los Angeles, Las Vegas and Jacksonville, Fla.
The portfolio deal adds 1,945 apartment units to the investor’s existing portfolio of 7,300 units.
Laguna Point Properties acquired the eight-property value-add portfolio from three separate sellers. On a combined basis, the portfolio traded for about $291,000 per unit.
“Most transactions of this size typically require significant institutional or private equity joint venture capital, but we bought this portfolio with the 100% support of our syndication of high-net-worth investors,” said Laguna Point Co-Managing Principal Dan Hick, who previously served as vice president, assistant general counsel at Irvine Co.
Fellow co-founder Greg Campbell previously headed the multifamily investment activity of TruAmerica Multifamily.
Laguna Point is based out of the Cerro office building in Mission Viejo; it doesn’t count any local investments.
Las Vegas Expansion
As part of the recent deal, Laguna Point Properties paid $129.7 million for two apartment projects in Las Vegas totaling 708 units, bringing the company’s portfolio in the city to nearly 2,500 units.
Topaz and Viridian were built in 1985 and 1981, respectively; both will undergo renovations that will upgrade units, common areas and the exteriors with new landscaping.
The value-add deal offered “a substantial discount to replacement cost,” the company said, citing a nearly 14% jump in Las Vegas asking rents for new apartment leases.
Cushman & Wakefield will manage the two assets.
Avison Young’s Las Vegas office represented Laguna Point; CBRE Capital Markets helped secure debt financing.
The Las Vegas deals come on the heels of a $328.8 million purchase by Laguna Point to acquire a five-property, 1,037-unit apartment portfolio in downtown LA.
JLL arranged the deal on behalf of Laguna Point, and secured the three-year acquisition loan through MF1 Capital LLC.
The assets include four historic prewar buildings and a 1959 asset that was converted from an office. All underwent their conversions between 2007 and 2010.
“This transaction provides Laguna Point with an opportunistic scenario through which the company can re-enter the Los Angeles market,” said Director of Acquisitions and Dispositions Garrett LaBar.
Greystar will manage the five Los Angeles properties, and ZRS Management will oversee the Jacksonville property. Laguna Point also counts apartments in Arizona, New Mexico and Utah.
“As our investor pool continues to grow, we are able to seek out larger and more complex transactions throughout the United States,” Laguna Point’s Hick said.