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Investor Wastes No Time in Picking Up Apartments

(Los Angeles Business Journal – Jacquelyn Ryan)

Omninet Capital LLC has purchased a 189-unit apartment building in Mid-Wilshire for $9.3 million in cash, closing escrow in an unusually quick 10 days.

The 2200-2208 W. Eighth St. property, known as the William Penn Apartment Homes, was sold this month by Bascom Group LLC. Irvine private-equity group Bascom purchased it in 2006 for $9.6 million and spent several million dollars on renovations. But the group decided to sell after some partners wanted to cash out, according to Brent Sprenkle, associate partner at L.A. real estate services company Hendricks & Partners, who represented Bascom.

Omninet is an investment vehicle of Beverly Hills resident Neil Kadisha, who ranked No. 39 on the Business Journal’s list of Wealthiest Angelenos last May with a net worth of $1 billion. The company has been seeking underperforming commercial properties in the Southwest of more than 50,000 square feet and valued at more than $5 million.

The apartment building had been on the market for a month and about 30 potential buyers toured the property, with 10 putting in offers. But Omninet’s all-cash offer and willingness to close in 10 days with no contingencies made it the favorable choice.

“It was an impressive transaction,” Sprenkle said. “Buyers and sellers usually want two weeks to inspect a property and 75 days to close.”

Omninet intends to continue operating the building as a rental. Units are all studios averaging about 250 square feet with monthly rates of $600, he said.

In January, Omninet bought a five-building office campus in Commerce for $40.1 million from Thomas National Properties LLC in Irvine. Its portfolio also includes the 45-story Sky Las Vegas condo tower and the 44,000-square-foot Valencia Oaks office building.

Omninet represented itself in the transaction.