LA housing agency pays $43M to buy 120 apartments in South LA – Robert Khodadadian

A Los Angeles housing agency has paid $43.4 million to buy a 120-unit apartment complex in South L.A.

The Housing Authority of the City of Los Angeles purchased the three-story building at 349 South La Fayette Place, in Rampart Village, the Commercial Observer reported. The seller was California Landmark Group, based in West Los Angeles.

The deal works out to $361,667 per unit.

HACLA said it will set aside 90 units as affordable to families earning at or below 80 percent of the area median income. The building, built in 1971, has a pool and a policy that allows birds, cats, dogs, fish and lizards, according to Apartment List.

The state-chartered agency acquired the 91,000-square-foot building with financing that included $23.4 million from City National Bank and $19.5 million of federal community development block grant.

Because the deal involved a public agency buyer, the sale was exempt from the Measure ULA transfer tax.

Kitty Wallace and Kalli Knight of Colliers brokered the apartment sale.

Asking rents for apartments across Los Angeles County hit at an all-time high of $2,183 in the first quarter, according to the Observer, cit ing figures from NAI Capital.

Investment sales have stalled, however, with nearly 60 percent fewer apartment buildings traded in the first three months of the year, compared to year ago.

HACLA is the largest owner of affordable housing in Los Angeles, with more than 11,000 units, according to the agency. Since 2020, it has purchased more than 2,000 units for nearly $900 million, or roughly $450,000 per unit.