(EDITOR’S NOTE: The transaction closed in November of 2022. However, details about the transaction were only recently revealed in a fourth quarter multifamily market report from Kidder Mathews. According to that report, The Vermont was sold by TruAmerica Multifamily for $235 million, or about $506,465 per unit.)
LOS ANGELES — Affiliates of Harbor Group International, LLC (“HGI”), a privately owned international real estate investment and management firm, today announced the acquisition of The Vermont, a high-rise multifamily community in Los Angeles’ Koreatown submarket. Image Capital, LLC, partnered with HGI on the transaction. The acquisition adds to HGI’s growing footprint in Southern California, following the acquisition of three multifamily communities in Long Beach in July 2022 and marking its tenth investment in the region.
Built in 2014, The Vermont comprises 464 apartment units across two high-rise towers perched above 31,000 square feet of retail space. The two towers are connected by a 7th floor sky lobby that features a library lounge, a club lounge, and a fitness center. The community also includes a six-level parking structure with separate entrances for residents and retail guests.
The Vermont features several defining characteristics and amenities that differentiate it from other apartment complexes in the neighborhood. In addition to the sky lobby, the community’s 7th floor offers nearly 27,500 square feet of outdoor space, including a resort-style pool and spa, yoga garden, dog parks, and multiple dining and entertaining areas. Interior units feature floor-to-ceiling windows that provide expansive views of the Hollywood sign, Downtown LA, and the Griffith Observatory.
HGI plans to implement a $22.3 million capital improvement plan to enhance the community, renovating common areas, interior hallways and upgrading select units. HGI’s investment activity on the West Coast has now exceeded $1 billion in the past twelve months.
“The Vermont offers the central location and expansive amenities today’s residents seek when choosing a home,” said Greg Heller, Managing Director, HGI. “Through this acquisition and investment, we see a significant value-add opportunity, positioning the community to better compete with newer, Class A properties in the neighborhood.”
The parties in the transaction were represented by Cushman & Wakefield., Inc. Marc Renard, Executive Vice Chair of the firm’s Capital Markets Group who led the team stated “The Vermont received interest from around the globe by investors that recognized the compelling cost basis versus new construction, the prospects for accretive additional property upgrades and the strong support for above national average rent growth driven by the numerous ‘knowledge’ based employment centers that surround the asset.”
Located at one of Los Angeles’ busiest intersections, the community offers convenient access to various destinations throughout the city. The LA Metro Rail’s Wilshire/Vermont subway station is directly across the street from The Vermont and easily connects residents to employers in nearby Downtown LA. Planned expansions to the Metro Rail will soon connect residents to other job centers throughout the city, including Century City, Beverly Hills and Westwood.
About Harbor Group International
Harbor Group International, LLC, and its affiliates control an investment portfolio of $19 billion including 5.0 million square feet of commercial space throughout the United States and the United Kingdom and 61,000 apartment units in the United States. In addition to its corporate headquarters in Norfolk, Virginia, HGI maintains offices in New York, Baltimore, Los Angeles, and Tel Aviv.