Verdugo Village, a 126-unit apartment property located northeast of downtown Glendale, was purchased in December for $54.2 million and will be rebranded after some major renovations.
If prospective tenants call Verdugo Village today, it will be referred to as "Towne at Glendale" in a prerecorded greeting. Towne at Glendale is the name Interstate Equities Corp., the real estate firm behind the purchase, will give the community as part of the acquisition and planned facelift.
Built in 1965, Verdugo Village's 126 units are a combination of two- and three-bedroom apartments. The complex was renovated in 2007 with the goal of converting the property into condominiums.
The transformation never happened, but the updated amenities, such as central air conditioning, made the property more attractive when it was later listed for sale this past September.
"It's rare, we thought, to find something of that size and, frankly, in the quality of that market," said Brendan Gibney, senior acquisitions associate at Interstate Equities. "There's maybe three or four other [property] deals of that size in Glendale, but it's actually undergone significant renovation."
Planned improvements to existing amenities include an overhaul of the main lobby and entrance, upgrades to the on-site movie theater and playground, as well as the installation of a fitness center and storage for residents. The kitchens and lighting in the units will also be updated.
Verdugo Village is currently around 96% occupied, but Interstate Equities will not expand the number of units to accommodate additional tenants.
According to Gibney, the firm is still in the early stages with designers for final renovation plans, but said they should be underway in the next three to six months.
Interstate Equities beat out 11 other bids for the property last year and was awarded the deal in November, with an official purchase the following month. Interstate Equities has invested in apartment communities along the California coast for many decades and recently purchased two other locations in and around Glendale — Pacifica Glendale Apartments in Glendale as well as Citra Apartments in Burbank.
"We're really excited about it, as a firm," Gibney said. "We are glad to maintain a presence in Glendale, one of the strongest submarkets in the Los Angeles area, and one that we'll be in for a while."
Jeff Landa, email@example.com