A joint venture between Cityview and PCCP has recapitalised a 243-unit apartment complex in Historic Filipinotown, Los Angeles, for US$76 million. Cityview, which was previously the sole owner, is selling a stake in the project to PCCP in this transaction. This equates to a price of approximately US$312,757 per unit for the asset named Belle on Bev.
Belle on Bev, located at 1800 Beverly Boulevard, was completed by Cityview in 2024 and includes ground-floor retail and entertainment space. This comprises retail shops, a speakeasy-style lounge, and a cocktail bar. Historic Filipinotown is strategically positioned between Echo Park and Downtown L.A.
Impact of the transaction and market conditions
The transaction generated approximately US$4.5 million in local transfer taxes, the majority of which flowed into Measure ULA. This measure is also known as the controversial 'Mansion Tax'. The recapitalisation comes at a time when the multi-family investment market in Los Angeles is recovering, with a noticeable increase in deal flow.
Despite this recovery, new developments remain constrained by high costs, financing challenges, and the impact of Measure ULA. Sean Burton, CEO of Cityview, recently told Commercial Observer that the company is no longer considering new development projects in Los Angeles, as the city is "nearly impossible" for construction projects due to the tax.
Market dynamics and future outlook
Current market dynamics in Los Angeles show a paradox: while the investment market for existing properties shows signs of recovery, conditions for new construction projects remain tight. This situation is significantly influenced by regulatory and fiscal frameworks that severely impair the economic viability of developments.
- —Property: Belle on Bev, 1800 Beverly Boulevard
- —Units: 243
- —Transaction Volume: US$76 million
- —Price per Unit: US$312,757
