18-Unit Multifamily Community in Paramount, Los Angeles County, Sells to Private Investor for $4.7 Million – CBRE

26 May 2020

7205-Motz

CBRE’s multifamily team has closed three deals in the last 45 days for a total of $8 million

Los Angeles – CBRE announced the sale of an 18-unit multifamily property, Capetown Village, in Paramount, Los Angeles County, to a private buyer for $4.7 million.

CBRE’s Dan Blackwell and Sean Farag represented the seller, a private investor, in the transaction.

Located at 7205 Motz Street, Capetown Village was originally constructed in 1986 and is comprised of 18 two-bedroom, 1.5-bathroom townhome-style units. The apartments feature two-car carports, private backyards, central air and laundry hookups. The property is within two miles of both I-705 and SR 91, two major Southern California freeways that connect Paramount to Los Angeles as well as Orange and Riverside County.

“This was a challenging transaction due to the global pandemic occurring just after the buyer removed all contingencies,” said Blackwell. “There is a lot more uncertainty regarding rent collections, which has caused lenders to be more cautious by raising interest rates, cutting loan proceeds and requiring reserves.”

Added Farag, “The buyer was in a 1031-exchange, which we ultimately were able to satisfy with a great property. Despite the pandemic, the buyer was still able to obtain attractive financing for the deal.”

The CBRE team also represented the buyer in the sale.

Including the Paramount transaction, Blackwell and Farag have closed three deals in the last 45 days for a total of $8 million. The team represented both parties in the sale of an eight-unit apartment community in La Habra, Calif. for nearly $2 million in early April, and represented the buyer in the sale of a two-unit property in Long Beach, Calif. for over $1.3 million in May.

“Southern California and especially coastal California is unique and has always been an attractive market for investors due to the strong demographics and the high barriers to entry for new development,” said Blackwell. “While Southern California has been impacted by the pandemic it stands to benefit from its strong fundamentals.”

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of 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.