The site is entitled for a 274-unit multifamily development
Los Angeles – December 15, 2016 – CBRE Group, Inc. announced the land sale in Woodland Hills, California to a United States subsidiary of Beijing-based BCEGI International Co., LTD. for $18.8 million.Laurie Lustig-Bower and Kamran Paydar of CBRE’s Multifamily Capitals Market in Los Angeles represented the seller, Selective Real Estate Investments.
The property, located at 6041 Variel Avenue, sits within the thriving Warner Center area and is in proximity to The Village at Westfield Topanga and other major malls. Two vacant industrial buildings currently occupy the property totaling approximately 84,320 square feet. The site is within walking distance to more than six million square feet of office space, and numerous dining and hotel amenities.
“Investors from China and throughout Asia view Los Angeles as a top destination for development opportunities,” said Laurie Lustig-Bower, leader of one of the most active multifamily land and apartment building brokerage teams in the country. “Demand for this fully entitled and well-located site is another example of the continued interest from international buyers to acquire real estate in Los Angeles.”
Lustig-Bower and her team have handled a dozen sales of Los Angeles real estate to Asian investors over the past 30 months.
“We continue to see strong demand from overseas groups looking to invest either on their own or with local partners in our market,” said Paydar. “The buyers pursued this western San Fernando Valley development opportunity because of the strong multifamily fundamentals and close proximity to world-class retail amenities and Warner Center’s Class A office employers.”
Vacancy rates for multifamily properties in Los Angeles had a slight increase from the start of the year through the third quarter as large amounts of new supply continue to be delivered, outpacing demand growth, according to CBRE’s latest research report. Completions for multifamily units totaled 6,001 through Q3 and are expected to reach 8,793 units by the end of 2016, the largest amount of completions in a single year over the past 20 years. In the past five years, rental rates in Los Angeles have risen from $1,794 to $2,241 per unit, a 26.7 percent increase.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
