A subsidiary of Lehman Brothers Holdings Inc. has sold the Serrano Apartment Homes in West Covina, Calif., to B.A.G. Investments for $29.4 million.

Lehman acquired the properties in September 2012 through foreclosure proceedings, according to Andrew Kirsh, an attorney with Sklar Kirsh, who represented Lehman in the transaction.

"Lenders who elected not to sell properties that they foreclosed on during the last recession are now benefitting from the recent spike in pricing over the last 12-18 months," Kirsh said.

"This turned out to be a successful transaction for Lehman, who has benefitted from a rapidly escalating multi-family market since assuming ownership of the asset," he added.