LOS ANGELES – October 7, 2019 — Compass Acquisition Partners (Compass), a private real estate investment company, announced today that it has acquired the 232-unit Sierra Canyon Apartments, from Klingbeil Capital Management for $60 million in an off-market transaction. Located at 27520 Sierra Highway, Sierra Canyon’s low-rise buildings are spread across 8.3 acres.
“We plan to be net buyers over the next 12 months with a goal of investing more than a half-billion dollars on assets located in fundamentally sound second ring cities, and Santa Clarita is a wonderful example of one of those target markets,” said Compass Acquisition Partners CEO Lynn Owen.
Built in 1987, Sierra Canyon offers spacious one-, two- and three-bedroom units in a variety of floor plans. Residents enjoy the community’s array of amenities and common areas that include a large pool and deck space, fitness center and barbeque areas.
Compass will invest approximately $5 million to renovate the property, with $2.4 million allotted to exterior and common area renovations including exterior painting, refreshed landscaping and new signage. The capital improvement program also includes modernized laundry facilities, clubhouse updates, installation of package lockers and the addition of outdoor gathering and recreation areas.
Units, which average around 1,100 square feet, and will be upgraded with wood look flooring, stainless steel appliances, fresh paint, cabinetry and countertops and new fixtures. Many units will be outfitted with a washer and dryer.
Santa Clarita has become a particularly desirable market, with a recent study from Apartment List showing that the city is experiencing the largest rent growth in the Greater Los Angeles metropolitan area. Located just an hour drive from Downtown Los Angeles, the area is well-known for providing a high quality-of-life for residents with reliable public transportation, distinguished public schools, multiple parks, hiking and family activities and nearby attractions including Six Flags Magic Mountain.
Compass currently has a portfolio of approximately $1.2 billion of multifamily assets located in select markets along the West Coast, Colorado and Wyoming. A fully-integrated real estate investment firm, it is actively seeking acquisition opportunities as it pursues a carefully crafted and implemented program to expand its portfolio with a particular interest in well-located multifamily properties in mature markets.
About Compass Acquisition Partners
Compass Acquisition Partners (https://compassacq.com) is a fully integrated real estate investment firm that acquires, develops, redevelops, and manages multifamily apartment communities located in supply-constrained markets. Currently, the portfolio consists of 35 multifamily communities concentrated in select submarkets along the West Coast, including Southern California, Northern California, Seattle metropolitan area, Colorado, Wyoming, Nevada and Hawaii.