$62M Student Housing Deal Closed in Los Angeles
Institutional Property Advisors (IPA), the institutional brokerage arm of Marcus & Millichap has announced the successful sale of Axiom Westwood, a prominent student housing portfolio located in the Westwood neighborhood of Los Angeles. The four-building asset, comprising 153 residential units, sits adjacent to the campus of University of California, Los Angeles (UCLA) and was sold for a total consideration of $62.6 million. Notably, the transaction represents the largest property sale by unit count in Westwood since 2020, underscoring continued investor interest in the highly competitive student housing sector.
The Axiom Westwood portfolio includes four residential buildings located at 415 Gayley Avenue, 411 Kelton Avenue, 555 Kelton Avenue, and 555 Levering Avenue. Together, these properties form a strategically positioned housing cluster that directly caters to UCLA students and nearby professionals. Two of the buildings—415 Gayley and 411 Kelton—are immediately adjacent to the UCLA campus, while the remaining two are situated just a short two-block walk away. This proximity to one of the nation’s leading universities significantly enhances the portfolio’s appeal, offering residents convenient access to academic facilities and campus life.
Originally constructed between 1962 and 1967, the properties have undergone extensive upgrades over the past decade. Beginning in 2015, the previous owner, Raintree Partners, invested substantial capital into modernizing the buildings. These improvements transformed Axiom Westwood into a turnkey asset, meaning it is fully operational and ready for immediate occupancy without requiring major renovations. The upgrades have improved both the physical condition of the buildings and their competitiveness within the local rental market.
Kevin Green, executive managing director of investments at IPA, highlighted the strategic opportunity the asset presents to its new owner. While the prior ownership completed significant renovations, Green noted that there is still room for further enhancements that could unlock additional value. Specifically, the buyer can pursue targeted capital improvements and operational efficiencies aimed at increasing rental income and overall return on investment. This may include interior upgrades, amenity enhancements, or refined property management strategies designed to maximize occupancy and revenue.
The transaction was facilitated by a team of IPA professionals, including Kevin Green, Joseph Grabiec, and Gregory Harris. The team represented the seller, Raintree Partners, and also secured the buyer, a private multifamily investor. While the identity of the buyer was not publicly disclosed, the acquisition reflects continued demand from private investors seeking stable, income-generating assets in supply-constrained urban markets.
Joseph Grabiec emphasized the unique dynamics of the Westwood submarket, describing it as one of the most supply-limited areas in Los Angeles. Despite ongoing and anticipated growth in UCLA’s student population, the development pipeline for new student housing remains relatively modest. UCLA is expected to increase its enrollment by more than 6% by 2030, yet only approximately 545 new student housing beds are scheduled to be delivered over the next three years. This imbalance between supply and demand is likely to support strong occupancy levels and rental growth for existing properties like Axiom Westwood.
The surrounding Westwood neighborhood further enhances the portfolio’s attractiveness. Residents benefit from walkable access to a variety of retail, dining, and entertainment options in Westwood Village. Popular destinations such as Target, Whole Foods, and In-N-Out Burger are located nearby, providing convenient everyday amenities. Additionally, the area offers proximity to cultural and recreational landmarks, including the Southern Regional Library, Pauley Pavilion, and Marshall Field, all of which are within a short walking distance.
Beyond its immediate surroundings, the property also enjoys strong connectivity to the broader Los Angeles metropolitan area. The location provides easy access to major transportation corridors, including Interstate 405, Interstate 10, and U.S. Highway 101. This connectivity enables residents to reach a vast employment base, with approximately 20,000 jobs located within a one-mile radius and an estimated 3.4 million jobs accessible within a 30-minute drive. Such accessibility makes the property appealing not only to students but also to young professionals and university staff.
From an amenities standpoint, Axiom Westwood offers a range of features designed to enhance the resident experience. The buildings include controlled access systems, on-site laundry facilities, and elevators for convenience. Outdoor amenities include two swimming pools, three gas barbecue grills, and both gated and covered parking options. These features contribute to a community-oriented living environment that aligns with the expectations of modern renters.
Interior unit features further add to the property’s appeal. Apartments are equipped with dual-pane windows, full-size kitchens, and air conditioning, ensuring comfort and functionality. Select units also include premium features such as vaulted ceilings, fireplaces, and private patios or balconies, which can command higher rental rates and attract a broader range of tenants.
Overall, the sale of Axiom Westwood reflects the resilience and attractiveness of the student housing sector, particularly in markets with limited new supply and strong institutional anchors like UCLA. The combination of a prime location, recent capital improvements, and favorable market fundamentals positions the asset for continued performance under its new ownership.
For Institutional Property Advisors and Marcus & Millichap, the transaction reinforces their role as key intermediaries in high-value real estate deals, particularly those involving institutional-grade assets. As demand for well-located, income-producing properties remains strong, transactions like this highlight the ongoing opportunities within the multifamily and student housing sectors in major urban markets like Los Angeles.
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