Argosy Real Estate Partners Invests in Venice Collection Apartments
On February 26, 2019, Argosy Real Estate Partners IV, L.P. and its parallel funds (“Argosy”), in partnership with LaTerra Development, acquired two sites totaling 0.8 acres for the development of a 129-unit, Class A multifamily portfolio in the Mar Vista neighborhood of western Los Angeles, California.
The Venice Collection Apartments will consist of one five-story 52-unit building with two levels of underground parking and one five-story 77-unit building with two levels of underground parking and 2,100 square feet of ground floor retail. The two sites are located across the street from each other (via pedestrian walkway) on Venice Boulevard and are currently improved with approximately 32,000 square feet of Class B retail space.
The project is entitled for multifamily use, offering the ability to develop new multifamily in the highly desirable Mar Vista neighborhood in the West LA submarket, which is severely supply constrained and has limited planned multifamily development in the pipeline. The project is located on Venice Boulevard, less than two miles from the Venice Beach Boardwalk, less than one mile from Abbot Kinney (one of LA’s premier outdoor retail shopping districts) and one mile south of Santa Monica.
The business plan is to complete pre-development work; construct, lease-up, and stabilize the asset. Following stabilization, there will be an opportunity to sell buildings individually or as a portfolio. If sold individually, there is significant demand for sub-100-unit multifamily projects in this location from local 1031 exchange or private buyers. Both buildings sold together as a 129-unit portfolio should attract institutional buyers.
The project will be developed in partnership with LaTerra Development, a best-in-class multifamily developer in the Los Angeles market. La Terra is headquartered five miles from the site and currently has three projects under construction totaling over 500 units in Greater Los Angeles, including a similar 99-unit project in Santa Monica.