Langdon Park Capital has bought an apartment complex in West Covina, marking its fourth investment since it was founded last year.
The L.A.-based investment firm bought the 138-unit complex at 1829 East Workman Avenue for $48.6 million, or roughly $352,000 per unit, the firm announced on Thursday.
Property records show New York-based Abacus Capital Group previously owned the building, buying it for $33.9 million in 2018, meaning its market value has risen by 43 percent since then.
Langdon Park is planning to spend an additional $3 million to renovate the units, most of which, the firm said, have not been renovated in the last 10 years.
The company is touting the deal as workforce housing and plans to rent out the units to those who make below the area median income. In 2020, the household area median income in West Covina was around $85,600, according to U.S. Census data. Langdon Park did not detail any specific measures to lower or subsidize rents at the property.
Malcolm Johnson, the firm’s founder, previously told TRD his firm is focused on buying value-add properties in predominantly minority neighborhoods.
Last month, Langdon Park Capital, which counts Kennedy Wilson as a founding and equity partner, bought its first two complexes in L.A. — a 177-unit complex in Hollywood and a 23-unit building in Baldwin Village for a total of $36.9 million. For its third purchase, the company bought a 304-unit complex in Washington, D.C., for $63.2 million.
Langdon Park is sourcing capital from a number of institutional firms, family offices and pension funds to make the purchases.
West Covina, located about 20 miles from Downtown L.A., has become a popular spot for multifamily investment. In May, Clarion Partners bought a 209-unit complex in West Covina for $92 million, or about $440,100 per unit. Earlier this year, Fairmont Management Company bought a 200-unit complex in the city for $80 million — almost double what it last traded for in 2016.