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ityView has made a savvy purchase in the Hollywood Hills with its acquisition of the 112-unit Candela apartment complex at 1950 Tamarind Avenue. The Los Angeles-based multifamily investor and developer paid $35.5 million, securing a deal that's over 10% below the pre-pandemic price. This translates to approximately $316,000 per unit.

    The seller, Raintree Partners, had purchased the complex in 2018 for $40.7 million, or around $360,000 per unit. CityView CEO Sean Burton notes that the current occupancy rate of 98% and the property's age – 50 years old – make it an attractive opportunity for interior renovations to boost returns.

    According to Institutional Property Advisors' Joe Grabiec, who brokered the deal with Kevin Green, new ownership can focus on high-return interior improvements without breaking the bank. The complex has already undergone upgrades under Raintree Partners' ownership.

    Meanwhile, nearby plans for over 700 apartments in two residential towers at Sunset Boulevard and Highland Avenue are shifting market dynamics in Hollywood. Developer Lincoln Property Company's revised plans have scrapped studio, office, and retail space, opting instead for a more residential focus.

    CityView is also adapting to changing market conditions, having recently opened an office in Dallas – a city that has seen increased multifamily development activity compared to Los Angeles. The recent Measure ULA property transfer tax has cooled the market in the City of Los Angeles, but the discount on the Candela complex's purchase price would more than cover the tax.