Warner Center apartments sell for $133 million
In one of the largest property sales in Los Angeles County since the real estate boom of the mid-2000s, a new Warner Center apartment complex has changed hands for nearly $133 million.
Wesco, a joint venture sponsored by Essex Property Trust, bought the 438-unit Millennium Warner Center from developer Warner Center Apartments, real estate brokerage Institutional Property Advisors said.
Although commercial property sales have slowed substantially since the boom, top-quality buildings in good locations with reliable income from tenants are drawing buyers willing to pay prices that match those of the peak years, industry observers said.
“There is tremendous demand for newer, Class A assets in core California markets, and these opportunities are few and far between,” said broker Stan Jones of Institutional Property Advisors.
Millennium Warner Center, which opened in December, is less than 60% leased but absorbing 40 to 70 units a month, he said.
“Given the intense buyer demand and leasing momentum, investors are willing to assume the lease-up,” Jones said.
Monthly rents in the complex at 21201 Kittridge St. run from $1,565 to $3,350.
-- Roger Vincent
Photo: Millennium Warner Center opened in December. Credit: Institutional Property Advisors