Commercial
Blackstone's LivCor Sells LA Apartment Complex at 33% Loss
By Real Estate Wire Staff, . Real Estate Wire.
LivCor, the multifamily platform owned by Blackstone, has sold Violet on Virgil, a 302-unit apartment community in Los Angeles, to Post Investment Group for $60 million, according to Multi-Housing News, which cited Yardi Matrix data. LivCor paid $90 million for the property in 2018, meaning the sale represents a loss of one-third of the original purchase price.
Post Investment Group financed the purchase with a $47.3 million Freddie Mac loan, a government-backed mortgage product for multifamily properties, originated by KeyBank.
Violet on Virgil sits on nearly 3 acres at 160 S. Virgil Ave., between the Koreatown and Westlake neighborhoods of Los Angeles. Built in 1971, the property consists of two low-rise buildings with studio, one- and two-bedroom units averaging 633 square feet.
Why this submarket, and why now
The sale did not happen in a vacuum. Koreatown and Mid-Wilshire, the submarket where Violet on Virgil sits, recorded the highest cap rates, a measure of investment yield based on a property's income relative to its price, across all of Los Angeles during the first half of 2026, coming in at 6.7 percent, according to a report by Marcus and Millichap's Tuvia Group cited by Multi-Housing News. Higher cap rates generally mean lower prices relative to income, which reflects the pressure older buildings in this area are under.
That pressure has two sources. A wave of new multifamily construction has flooded the submarket with fresh supply, making it harder for older properties to compete on amenities or rents. At the same time, owners who locked in cheap debt several years ago are now facing much higher refinancing costs. For some, selling and paying off the existing loan is more attractive than refinancing at today's rates.
Despite those headwinds, or perhaps because of them, Koreatown and Mid-Wilshire logged the highest number of closed deals among all Los Angeles submarkets year-to-date through June, the same Tuvia Group report shows. Investors are accepting operational risk and supply volatility in exchange for higher going-in yields.
A second discounted sale nearby
Violet on Virgil is not the only nearby property to trade at a steep discount. In June, Pacific Urban Investors paid $139 million for Next on Sixth, a property that sold for $189 million in 2019, according to Yardi Matrix data cited by Multi-Housing News. That works out to a decline of 26.5 percent from the prior sale price.
Two significant discounts in the same submarket within months of each other suggest this is not a one-off correction. The pattern points to a broader repricing of older Los Angeles multifamily stock, particularly assets acquired near the top of the market with debt that has since become expensive to carry or replace.
What to watch
The harder question for investors and lenders is how many similar situations remain unresolved across the Los Angeles market. Properties that have not yet traded may still be carrying 2021 or 2022 valuations on their books, and the gap between those figures and what buyers will actually pay is now visible in transactions like this one. Whether more owners choose to sell at a loss, extend and pretend, or hand keys back to lenders will shape the submarket's trajectory through the rest of 2026 and into next year.
Source: https://www.multihousingnews.com/exclusive-livcor-takes-haircut-in-60m-la-sale/
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