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HomePanorama CityRecord-Breaking $85 Million Deal Marks Largest San Fernando Valley Sale of 2024

Record-Breaking $85 Million Deal Marks Largest San Fernando Valley Sale of 2024

Valley Heights Panorama City Exterior
The Valley Heights complex in Panorama City is one of 16 properties included in the recent sale. RentCafe

A portfolio of 16 apartment complexes across the San Fernando Valley sold to a Florida developer, in the largest multifamily sale in The Valley in 2024, and the sixth-largest in Los Angeles County.

The buyer, Yaacov Brenenson, paid $85 million for a total of 596 units, dispersed among 16 apartment buildings in Panorama City, Van Nuys, North Hills and Canoga Park.

The buildings range from 6,030 to 160,860 square feet, the majority of them classic Valley complexes from the 1960s, two stories, with 35-60 units surrounding a courtyard or pool.

Some notable buildings in the sale include The Palms at Orion in North Hills and Valley Heights in Panorama City, with its distinctive 1962 blue checkerboard exterior. The largest property in the portfolio is Panorama City’s Midtown Apartment Homes, with 201 units across 160,858 square feet.

Midtown Apartments Panorama City Ca Exterior Pool
Panorama City’s Midtown Apartments is the largest property in the sale, with 201 units across 160,858 square feet. Zillow

Brenenson’s firm, Material Comforts Inc., received additional investment from a non-profit housing developer, National Community Renaissance.

As part of the investment, at least half of the new units (total, not per building) must be leased to people earning under 80% of the area median income, which qualifies as low-income in California.

The deal structure points to an emerging trend in Los Angeles real estate: the partnership of private capital with affordable housing non-profits.

In one of the more notable cases, developer Thrive Living recently broke ground on 800 affordable housing units in Baldwin Hills that will be located atop a Costco.

Thrive said the rent from Costco will reduce the amount of government subsidies they receive for the affordable housing, though they will still receive state funding.

Costco South L.A. Apartments Rendering
A new development of affordable housing units in South L.A. will be located atop a Costco. Thrive Living

Brenenson, the buyer of the San Fernando Valley portfolio, has purchased other multi-family homes in Los Angeles in recent years. In 2022, he purchased an 85,000 square foot mixed-use space in Westlake for $32.5 million, and in 2023, a 19-unit apartment complex in Hawthorne for just under $3 million.

The sale was brokered by Calabasas real estate firm Marcus & Millichap. Executive managing director of investments Tony Azzi represented the three sellers: Chicago-based real estate firm Heitman LLC., Atlanta investment management firm Invesco Ltd., and Ethos Real Estate, a Huntington Beach real estate investment firm that specializes in affordable housing.

Marcus & Millichap Brokers 85 Million San Fernando Valley Multifamily Portfolio Sale
Azzi Group, Image via Marcus & Millichap.

The sale generated two heavily attended open houses, Marcus & Millichap said, and 28 offers. A competitive “best and final” process required all offers to close before year-end without contingencies. The final sale with Material Comforts and National CORE finalized at $142,617 per unit.

“This approach not only delivered substantial financial benefits but also addressed critical community needs, such as affordable housing,” Azzi said. “By leveraging creative deal structures, this transaction serves as a model for future collaborations between the public and private sectors, demonstrating how high-value transactions can succeed in challenging markets.”

Yaacov Brenenson, president of Material Comforts Inc added. “This acquisition underscores the importance of persistence and partnership in today’s market. While many are moving investments outside of California, we saw this as an opportunity to make a long-term investment in the future of Los Angeles.”

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