Coto Estates Inc. has purchased a luxury apartment complex in Torrance, California, for $71.5 million.
Located at 25935 Rolling Hills Road in the South Bay area of Los Angeles, The Highlands has 121 rental units.
The luxury apartment community recently underwent a $16.5 million renovation that included the addition of 14 accessory dwelling units.
Highlands is just a few minutes’ drive from a variety of retail, entertainment and dining options, and the beach and coastline are within a 10-15 minute drive.
The South Bay multifamily market had a strong second quarter. CBRE reports that the vacancy rate for the three months ending in June was 4.3 percent, the lowest in Los Angeles. Rents in the region also increased 1.4 percent quarter-over-quarter. Net absorption reached 247 units, down five units year-to-date through June.
CBRE represented Koto and the seller, Ocean Ten LLC. Japan-based Koto is a frequent client of the CRE giant.
“South Bay residents are severely underserved when it comes to quality rental housing,” said Priscilla Nee, executive vice president at CBRE.
“Increased demand for assets like The Highlands has resulted in high occupancy rates and other notable multifamily fundamentals for investors, providing our clients with the opportunity to drive post-stabilization rent growth.”
