CBRE Facilitates the $71.5 Million Sale of 121-Unit Multifamily Property in Torrance, California

CBRE announced the sale of The Highlands, a luxury multifamily property in the South Bay region of Los Angeles. The property, consisting of 121 units, was purchased by Koto Estates Co., LTD, an investor from Japan and a repeat client of CBRE. The buyer, represented by Priscilla Nee and Yasuyuki Kojima, acquired the property from Ocean Ten, LLC for $71.5 million in cash, which equates to $590,910 per unit.

“The South Bay resident base has been severely underserved in terms of high-quality rental housing,” said Ms. Nee. “The pent-up demand for assets like The Highlands has resulted in high occupancy and other notable multifamily fundamentals for investors, providing our client with the opportunity to drive post-stabilization rent growth.”

The Highlands recently underwent a $16.5 million renovation aimed at appealing to the affluent demographic in the South Bay. The units feature luxury finishes, vaulted ceilings in top-floor units, washer/dryers, and air conditioning in all units, and an outdoor gym, pool, and multiple lounge areas. The renovations also included the addition of 14 ADUs.

The property is located at 25935 Rolling Hills Rd., in Torrance, California, adjacent to the affluent coastal Rolling Hills and Palos Verdes neighborhoods. It is within a 10–15-minute drive of local beaches and scenic coastline, and a 5–10-minute drive to premier retail amenities, dining, and entertainment.

The multifamily vacancy rate in South Bay is among the lowest in the region at 4.3 percent and rent prices have increased by 1.4 percent quarter-over-quarter, according to a recent CBRE market report.