Northland Acquires DTLA Tower in Massive $504M Deal

Private real estate equity firm Northland has entered the California market with the purchase of THEA at Metropolis, a 59-story, 685-unit apartment tower in Downtown Los Angeles. The $504 million acquisition price of the 2-year-old building, currently at 91% occupancy, represents one of the largest single asset, market-rate multifamily acquisitions in U.S. history.

First designed as for-sale condominiums before being converted into apartment homes after construction, THEA boasts full floor to ceiling glass construction, luxury condo-spec interior finishes and smart-home features. Community amenities include a 1.5-acre podium deck with pool, cabanas and an urban garden. There are also eight, 3,000-square-foot penthouse units with 360-degree views.

“In THEA, Northland secured an extraordinary opportunity to acquire the highest quality luxury apartment tower in the United States at a steeply discounted price. The building’s spectacular design, condo execution and unparalleled amenities offer residents a next-level experience that will hold the test of time,” said Northland CEO Matthew Gottesdiener.

According to Northland, the purchase price values the units at $714,000 each and $688 per square foot, a 40-45% discount to today’s replacement costs.

JLL’s John Strauss, Peter Yorck, Nick Lavin and Bryan Ley represented the seller in the transaction, Greenland Holding Group and JLL’s Brandon Smith and Annie Rice also secured financing on behalf of Northland.