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Iconiq Looks to Sell Sentral-Managed Apartments in DTLA

Iconiq Capital is looking to sell two apartment towers in Downtown Los Angeles managed by Sentral, which focuses on providing hotel-like amenities and offering short-term rentals, The Real Deal has learned. 

The firm is selling the 300-unit 732 Spring Street and 275-unit 755 Spring Street, according to marketing materials for the properties. A team led by JLL’s Blake Rogers is handling the properties’ sale. 

Sentral and Rogers declined to comment. Iconiq did not respond to a request for comment.

Entities tied to Iconiq bought the two towers for $403 million in 2019 and 2020 from Holland Partner Group, records show. The price works out to roughly $700,000 a unit. The firm used a $268 million loan from Santa Monica-based PCCP for the acquisitions, according to an announcement at the time. 

Holland Partner Group built both properties in 2019. Iconiq bought the two apartment towers in Downtown L.A. with the goal of long-term ownership, a PCCP release at the time said, which did not name the buyer. 

Iconiq is offering the properties at a “significant discount to replacement cost” — estimated at less than $1 million per unit, according to the marketing materials. That would make the listing price less than $575 million for both buildings, though JLL did not disclose an asking price. 

The properties can be purchased individually or as a portfolio, according to JLL. 

For any prospective buyers worried about the impact of the pandemic, and Los Angeles’ eviction moratorium, JLL said the buildings’ owner and manager have “repositioned the rent roll with more affluent, creditworthy renters.”

In 2023, Iconiq evicted 148 tenants from the two buildings, up from eight in 2019, according to the marketing materials. So far this year, the firm has evicted 12. 

On renewals, the portfolio is seeing rent increases of 6.1 percent, according to JLL. 

That bucks the larger trend across Downtown L.A., where average monthly rents have dropped 6 percent over the last year, according to Zumper data. 

The listings come shortly after Iconiq, which is part-family office, part-investment manager, offloaded two complexes in Seattle. On one deal, Iconiq purchased a 275-unit complex for $114 million and sold it for $91.1 million, according to reports

Iconiq has put more than $500 million into Sentral, which now manages about $2 billion worth of properties owned by Iconiq. 

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