North Downey apartment community sells for $40 million

Colliers photo

DOWNEY – A 104-unit apartment community in North Downey has sold for $40 million, according to reports released Monday.

Parc @ 5, a garden-style apartment complex located near the 5 Freeway and Lakewood Boulevard, was purchased by B.A.G. Investments from seller Parc @ 5 Downey, LLC. The transaction was brokered by Colliers Executive Vice President Shane Shafer.

The apartment community includes 20 one-bedroom units, 64 two-bedroom units and 20 three-bedroom units.

While Colliers did not publicly disclose the purchase price in its announcement, L.A. Business First reported the property sold for $40 million.

In a statement released by Colliers, Shafer described Parc @ 5 as “one of the most well-designed and highest-quality apartment communities in the submarket.”

“The 605 Corridor remains one of the most consistent performers for rent growth and investor returns, with additional upside driven by limited new supply,” Shafer said.

Colliers said the buyer was attracted to the property’s existing cash flow and future value-add potential. The firm also noted that Parc @ 5 is one of the few apartment communities in North Downey with more than 100 units, making it a rare large-scale multifamily investment opportunity in the area.

According to Colliers, the property benefits from its proximity to the 605 and 91 freeways, providing access to employment centers throughout Los Angeles County, Orange County, the South Bay and the Inland Empire.

The real estate firm also pointed to strong demographics in the surrounding area, including average household incomes exceeding $100,000 and home values surpassing $900,000, factors it said continue to support demand for rental housing in Downey.