A Tarzana apartment complex has traded for $11 million, according to KW Commercial in Encino.
The 48-unit Tarzana Gardens at 5911 to 5917 Reseda Blvd. sold to L.A.-based investment and development company Lion Real Estate Group in an off-market deal, said Michael Koshet, a broker with KW Commercial who represented Lion in the purchase.
A family trust owned the complex, Koshet said, and the children decided to sell after the mother passed away recently. Beth Gibson of the Frances Group represented the sellers, according to Koshet.
According to CoStar Group Inc., the seller was Reitman Reno Properties and the two-story apartment complex was built in 1963.
Lion bought the neighboring 112-unit apartment complex, the Terraces on the Boulevard, in June for nearly $19 million. That complex has strictly studios and one-bedroom, one-bathroom units, while Tarzana Gardens has two-bedroom, two-bathroom, and three-bedroom, two-bathroom units.
“That’s why this made sense to them,” Koshet said. “If you buy one building and that is all studios and one-bedrooms, then you buy the one next door and it’s two- and three-bedrooms, you can rotate tenants if they want to expand or downsize.”
Lion also plans to rehabilitate the complex, Koshet said. Typically, the company spends between $10,000 and $20,000 a unit in its upgrade projects, he added.