Cityview and Stockbridge have formed a joint venture to acquire Millennium Gardena, a development site in Hawthorne fully entitled for 262 apartment units. The Dinerstein Companies sold the property for an undisclosed price.
The site comes with plans in place to build a sustainable property, targeting a LEED Silver certification. The property will feature a mix of studio, one- and two-bedroom units ranging from 510 to 1,197 square feet alongside amenities including a fitness center, resort-style pool, spa, lanai, outdoor strength area, barbeques and open-air courtyards. The sustainable features include high-performing lighting, enhanced indoor air quality, and a renewable-energy-powered solar thermal water heating system.
The property is located in Hawthorne, which is considered an underserved apartment market with a major local employers like Ring and SpaceX. The area has also seen inward migration from tech, aerospace, automotive and ecommerce corporations, which will serve to drive multifamily demand. The property is near Interstate 105, and just three miles from Interstates 405 and 110, and two blocks from a LA Metro Green Line, making it easily accessible to a wide audience.
The Los Angeles apartment market rebounded rapidly from the displacement caused by the pandemic. One reason for the swift recovery: a supply demand imbalance. Construction activity slowed in 2020 and 2021, exacerbating the dearth of housing supply in the region. The South Bay is one of the markets suffering most from supply constraints. A report last year from Marcuse & Millichap estimated that the area would see a 10% to 35% decrease in new home deliveries. The Westside Cities and San Fernando Valley were also among the markets to see a reduction in housing stock. The only market in Los Angeles to see an increase in housing supply through the pandemic is Downtown Los Angeles.
Newmark senior managing director Chris Benton, managing director Anthony Muhlstein, co-head of capital markets Kevin Shannon and executive managing director Ken White represented the seller in the deal. The buyers plan to break ground at the end of the year with delivery planned for 2025.
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