Universe Holdings assembling USD65m multifamily portfolio

Universe Holdings has acquired a 17-unit apartment building in Los Angeles’ Los Feliz neighbourhood, the first asset in a USD65 million, 249-unit Southern California multifamily portfolio, expected to close within the next 30 days. 

Built in 1963, 4325 Franklin Avenue features a mix of one-, two- and three-bedroom apartment homes. Universe plans to initiate a capital improvement plan that includes upgrading apartment interiors with high end finishes and renovating common areas and amenities.

The portfolio, consisting of small value-add and larger core assets in Los Angeles and San Diego Counties, will provide investors, both institutional and high-net-worth investors with the kind of diversification they are looking for, according to Universe Founder Henry Manoucheri.

“By bundling assets, we can create a larger, more diversified investment opportunity which we’re confident will lead to superior blended returns,” says Manoucheri. “It also gives investors access to multiple Southern California submarkets  providing the benefits of rising tides in various regions.”

Universe’s continued growth also played a role in the company’s decision to develop its new investment model according to COO Jonathan Cohen.

“As we move toward the middle market, we were compelled to find a way to modify our investment model to be able to provide institutional level investors with the kind of larger assets they require,” says Cohen. “This new investment model gives us the ability to offer a melted portfolio of both value-add and stabilised assets which produce a compelling product for investors. Our mindset right now is to balance value-add with cash flow properties to create these mini `funds’ that give investors the best of both worlds — consistent cash flow and an attractive upside.”