Glendale apartments sold out of receivership for $43 million

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A Glendale apartment complex has been purchased out of receivership by Essex Property Trust Inc. for $43 million, the receiver said Monday.

Essex, a Palo Alto-based real estate investment trust, bought the 115-unit complex at 416 E. Broadway. The developer, East Broadway Ventures of Newport Beach, intended the four-story project to be condominiums, but the home sales market was in distress by the time it was completed in 2009 at a cost of up to $58 million.

The complex was converted to apartments and is now more than 95% leased, according to receiver Taylor Grant, principal of California Real Estate Receiverships in Newport Beach.

“When the market recovers, it may well again be sold as a condominium,” Grant said. There were more than 20 offers to buy the project, he added, “which is indicative of the continuing demand for quality projects in undersupplied markets.”

The property was encumbered with numerous liens and competing claims for payment that had to be resolved before it could be sold, Grant said. It includes 9,000 square feet of retail space at ground level.

Broker Sean Deasy of Holliday Fenoglio Fowler represented both parties in the sale.

-- Roger Vincent