Two Tarzana apartment buildings have sold in an off-market deal for nearly $19 million, according to their L.A.-based buyer Lion Real Estate Group.
Lion, an investment and development company, said it has bought the Terraces on the Boulevard, which has 112 units between two structures at 5919 and 5931 Reseda Blvd., for $18.8 million, or nearly $168,000 per unit. Benedict Canyon Equities was the seller. The properties are a mix of studios, one- and two-bedroom units and feature swimming pools, laundry rooms and a gym.
Lion said it plans exterior and interior renovations and expects to be able to increase rents to new tenants by 16 percent, the difference between current rents at the complex and the local market average.
Interior renovations will include new vinyl flooring, paint, appliances and stone counters while the outside will get a new exterior and improvements to common areas, landscaping, the pools and gym. The complex will also be rebranded. The apartments, built in 1964 and 1970, were last renovated in 2006, Lion said.
Another factor that motivated Lion to buy the complex, the company said, was that it will be able to reduce operating costs because it owns another apartment building nearby.