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Nuveen reaps $101M on San Fernando Valley apartments

Affordable-housing specialist Lincoln Avenue Capital buys 354-unit complex in Chatsworth

Nuveen reaps $101M on San Fernando Valley apartments
Nuveen Real Estate CEO Mike Sales, Lincoln Avenue Capital CEO and founder Jeremy Bronfman and Waterstone at Chatsworth complex at 9901 Lurline Avenue (CBRE, Nuveen Real Estate, Lincoln Avenue Capital)

Nuveen Real Estate has offloaded a 354-unit apartment complex in the San Fernando Valley for $101.8 million.

Santa Monica-based affordable housing developer Lincoln Avenue Capital bought the Waterstone apartment complex at 9901 Lurline Avenue in Chatsworth, CBRE, which brokered the deal, announced on Tuesday.

Chicago-based asset manager Nuveen bought the complex in 2016 for $72.5 million, records show. It secured

The deal came out to around $288,000 per unit; a recent sale of a 130-unit apartment complex in the nearby Santa Clarita submarket of Los Angeles County came at $62 million, or $477,000 per unit.

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The San Fernando Valley property, built in 1971, recently underwent extensive renovations. It now includes an outdoor pool, gym, club house and dog park.

“Waterstone represents the largest sale — both in sales price and number of units — of pre-1980s built multifamily properties in the San Fernando Valley over the last 24 months,” CBRE’s Dean Zander said in a statement.

Lincoln Avenue Capital plans to turn the complex into affordable housing for tenants with household earnings between 60 and 120 percent of the area’s median income. No public funds or rent limits were involved as part of the deal, according to CBRE’s Zander.

Rents at the building currently range from $1,780 per month for a studio to up to $3,572 for a two-bedroom unit, according to the complex’s website.

Lincoln Avenue Capital owns and invests in more than 88 properties across the U.S., totaling more than 15,000 units. Last month, it acquired a majority stake in an affordable housing real estate investment fund, Housing Partnership Equity Trust, adding it planned to purchase at least $150 million per year in workforce and affordable housing developments.

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