San Fernando Valley Business Journal

Canoga Park Apartments Sell for $26.3 Million

By Karen E. Klein Monday, June 29, 2015

A Beverly Hills multifamily investment firm has acquired The Verandas, an upscale 81-unit apartment complex in Canoga Park, for $26.3 million.

CORES Management Inc. bought the 21535 Roscoe Blvd. complex from Praedium Group LLC of New York and Brooktree Realty Investors LLC of Beverly Hills, which sold it for a healthy profit.

They purchased the gated property for $21.5 million shortly after it was built in 2012 by Canoga Park developer Shawn Evenhaim, of Evenhaim Industries Corp.

The sale price amounted to about $325,000 a unit, well above the average $228,000 sale price for similar properties in Canoga Park in the first quarter, according to real estate data firm CoStar Group Inc.

Twenty-seven units are penthouse/loft apartments with 20-foot cathedral ceilings and private rooftop decks. Others feature granite kitchen countertops, fireplaces, walk-in closets and stackable washers and dryers. Common areas include a lounge, fitness center, pool with spa and an interior courtyard with fireplace and barbeque area. Security is monitored 24 hours.

Current rents for the 1,240-square-foot, two- and three-bedroom units average around $2,400 a month

Sami Dinar of Keller Williams Realty’s Beverly Hills office, who represented the buyer, said the buyer saw potential for future rent growth at The Verandas, which is 95 percent leased.

The 100,500-square-foot complex is located near Warner Center, where 50,000 people work for large employers such as Intuit Systems, Kaiser Permanente and Universal Music Group. It also is near an Orange Line bus station that connects with the Metro Red Line to Hollywood, he noted.

“The Canoga Park/Warner Center submarket is currently like an iron on fire,” Dinar said in a prepared statement. “The submarket offers investors one of the most diverse and growing business climates in the greater L.A. Metro area, with relatively limited high-end supply for the white collar jobs that are expected to come online.”

Peter Sherman, senior vice president of CBRE Groups’ Capital Markets, who represented the seller, said the property additionally will benefit from The Village at Westfield Topanga, Westfield Corp.’s open-air mall expected to open in the fall.

Also representing the seller was Curtis Palmer, an executive vice president, and Ted Fentin, a senior vice president, at CBRE Capital Markets.