SoldBroker Activity · Entry № 80

Equity Residential Sells Koreatown Apartment Complex for $50 Million Less Than It Paid

Pacific Urban bought a 2017 built, for an estimated $323,000 per apartment at an 11.4 GRM—with a Target, amenities and parking.  Why would anyone pay $200,000–$300,000 per door for a restricted ED1 project?

PublishedJuly 2026
StatusSold · Just Closed
DatelineThe Tape · Koreatown, Los Angeles
620 S Virgil Ave hero photo
FIG. 01, 620 S Virgil Ave, Koreatown, Los Angeles CA 90005. Listing photo via Cushman & Wakefield.
Four takeawaysFour things an operator sees at 620 S Virgil Ave
  1. The real apartment price was closer to $323,000 per unit. Initially this is reported at $349,246 per unit that includes the ground-floor Target. I estimate Target’s 22,000 SF lease is worth approximately $10.6 million. Backing that out leaves: $128.4 million for the apartments $322,600 per unit $445 per residential SF 11.4 GRM
  2. Equity lost $50 million on the purchase price.  The property was built in 2017 and is 97% occupied. Yet its value fell from $189 million to $139 million. A 26.5% decline.
  3. Pacific Urban put 50% down. The buyer secured a $69.5 million loan on the $139 million acquisition, approximately 50% debt and 50% equity.  Great Lesson to learn about 50% LTV. 
  4. This is the Brutal Reality for newer Koreatown apartments. Pacific Urban is a major institutional investor with more than 23,500 apartments.  It just bought a 2017 built Koreatown complex at an estimated $323,000 per unit and 11.4 GRM.
Deal Stats · 620 S Virgil Ave
Sale Price
$139M
closed June 5, 2026
Units
398
148 studio · 206 one-bed · 44 two-bed
Price / Unit
$349,246
per door
Price / SF
$383/SF
362,580 gross SF
Year Built
2017
6-story reinforced concrete
Lot SF
80,150 SF
1.84 acres · LAC4 zoning
Loan
$69.5M
Berkeley Point Capital · Conventional
LTV (implied)
50%
$69.5M / $139M
ULA Tax (est.)
$7.645M
Measure ULA · above threshold
Hold Period
82 months
Equity Residential exit
Submarket Avg PPU
Exploring
Koreatown comps are changing fast. 
Transit Score
100
Walker's / Rider's Paradise

What an Operator Sees

The $50 million loss gets your attention. The buyer’s basis is the real data point.

A sophisticated apartment investor just bought newer, market-rate Koreatown apartments for approximately $323,000 per unit, $445 per residential SF and an 11.4 GRM with 50% down.

And it has a Target, a pool, multiple roof decks, a fitness center and a gated underground parking garage.

You cannot build to an 11.4 GRM today.

So before anyone buys an ED1 project for $200,000–$300,000 per proposed unit, they should study this sale. Why take entitlement, construction, financing and lease-up risk for restricted affordable units when completed, market-rate apartments with parking are trading for approximately $323,000 per door?

That is the comp I’m tracking.

I track every commercial real estate sale in Los Angeles so you don’t have to.

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Send OMs: David@AtlasBrief.LA

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https://www.linkedin.com/in/david-safai/


Brokers
Listing Broker
Manfred Schaub
Cushman & Wakefield
Written from the field

David Safai, operator, developer, GC.

Atlas Home Builders, Inc. is a Los Angeles owner-operator and general contractor. If you are a broker with a listing you want an honest read on, send the OM and the T-12 to David@AtlasBrief.La.

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