SHP and Rockpoint acquires three Southern California multifamily assets

Strategic Housing Partners and Rockpoint Group have acquired three multifamily properties in Southern California. The deal includes Marathon Towers, a 94-unit apartment complex located in East Hollywood and a multifamily portfolio comprised of 14 buildings and 592 garden-style apartment in the San Fernando Valley area. No financial terms were disclosed.

PRESS RELEASE

EL SEGUNDO, Calif., July 26, 2017 /PRNewswire/ — Strategic Housing Partners (SHP) LLC, a vertically integrated real estate investment firm focused on acquiring and repositioning multifamily properties in Southern California, announced the closing of three multifamily acquisitions with its joint venture partner Rockpoint Group (Rockpoint) over the last twelve months, totaling more than 1,200 apartment units throughout the metro Los Angeles region.

SHP and Rockpoint intend to initiate a full capital improvement plan to transform all of the properties and enhance the overall value proposition for renters and the local communities. The three acquisitions include:

San Fernando Valley Portfolio: a multifamily portfolio comprised of 14 buildings and 592 garden-style apartment units located in Panorama City, North Hills, Van Nuys and Canoga Park. SHP and Rockpoint are upgrading the properties to include new interiors with upscale finishes, including kitchens with granite countertops and wood-inspired plank flooring. The exteriors are also being renovated to include designer paint schemes and wood cladding, a unique feature in this particular market. Each garden-style community will receive new landscaping and will be oriented around a central pool or recreational area.

Marathon Towers: a 94-unit apartment complex located in East Hollywood, a rapidly evolving, infill Los Angeles submarket. The redevelopment plan for the property involves a complete, high-end interior renovation of all units, including installation of quartz countertops, custom-tiled bathrooms, in-unit washer/dryers, and wood-inspired plank flooring. The renovation also envisions the addition of desirable new amenities, including an outdoor pool and lounge, tenant-only fitness center, and on-site leasing office. The building will also feature a new, modernist facade designed by KFA architects to distinguish the property within the community.

South Bay Portfolio: a 506-unit multifamily portfolio comprised primarily of two-bedroom townhomes in the vibrant South Bay submarket of Torrance. SHP and Rockpoint plan to enhance the portfolio by preserving well-maintained and attractive exteriors and renovating unit interiors, including the addition of new kitchens with quartz countertops, waterfall edges, full slab quartz backsplashes, contemporary subway-tiled bathrooms, in-unit washer/dryers, and wood-inspired plank flooring. Warren Berzack, Travis Haining and Alton Burgess of Lee & Associates represented the seller in the transaction.

SHP is a joint venture led by five experienced real estate professionals, including Moshe Azogui, Steven Ludwig, Eric Freedman, James Killian and Jerry Baker. Collectively, the principals of SHP have a track record of more than $5 billion in real estate transactions over the last two decades. SHP also employs a vertically integrated platform, which includes its in-house property management company Coastline Real Estate Advisors and an affiliated construction management company, Strategic Renovations Partners (SRP).

“When we launched SHP, our vision was to become the premier multifamily owner in Southern California, and with these latest acquisitions completed with our partner Rockpoint, we are well on our way to reaching that goal,” said Moshe Azogui, Principal, SHP. “We believe our partnership has the key components in place to increase asset value while providing terrific housing to the communities we’re investing in and excellent risk-adjusted returns to our investors.”

“These three acquisitions are a perfect fit with our investment criteria, given the strength of the existing fundamentals in each submarket and demand for quality multifamily product throughout Southern California,” added Steven Ludwig, Principal, SHP. “We will continue to seek attractive new investment opportunities in the coming months.”

About Strategic Housing Partners
Formed in 2016, Strategic Housing Partners, LLC is a joint venture between the principals of Coastline Capital Partners, LLC and JDR Holdings, LLC. SHP specializes in acquiring and repositioning underperforming or mismanaged income-producing multifamily properties through renovation, rehabilitation and professional property management. By utilizing a vertically integrated platform, SHP successfully acquires and efficiently repositions the multifamily properties that make up the core of its investment portfolio. SHP leverages the expertise of its in-house asset management and affiliated property and construction management companies to streamline all facets of the business cycle to maximize its returns and grow the portfolio. For more information, visit http://www.shp-ca.com/.

About Rockpoint Group
Rockpoint Group, L.L.C. is a real estate private equity firm headquartered in Boston, with additional primary offices in Dallas and San Francisco. Since 1994, Rockpoint’s founding Managing Members with others have sponsored thirteen commingled funds and related co-investment vehicles, raising over $18 billion in capital commitments and investing approximately $15 billion of equity in over 390 transactions with a total capitalization of approximately $53 billion. Rockpoint employs a fundamental value approach to investing in both its opportunistic and lower-risk strategies and focuses on select product types and geographic regions, with a primary emphasis on opportunities in major coastal markets in the United States.