|
|
9/26/16
|
Three apartment buildings in Hollywood totaling 54 units sold in recent deals with a combined price of $11.2 mil. The value-add sales are for one 32-unit property and two 11-unit, non-continuous mid-century buildings, located in the heart of Hollywood.
The properties, located on Las Palmas Ave, north of Santa Monica Blvd and midway between Fountain and DeLongpre, are situated just minutes from legendary landmarks such as the TCL Chinese Theater, Capitol Records and the Hollywood Walk of Fame. The Hollywood Metro Red Line Station is just two blocks to the north at the Hollywood Highland Center, while the Dome Entertainment Center at Sunset and Vine is just six blocks to the east.
The properties contain a mix of studios, one- and two-bedroom units, and the larger building has a swimming pool. The buildings were being operated at 100% occupancy at rent levels significantly under current market rates. The buyer, a private family and long-term owner with nearby assets, plans to upgrade the interiors and increase rents as units turn.
Dean Zander and Mark Ventre of Berkadia represented both sides of the transactions, which had a staggered close between the first week of August and the first week of September.
“Given their location, the potential to increase rents with minimal capital expenditure, and the low interest rate environment, we were able to garner several offers that were at and over the list price that were made on a non-contingent basis,” said Ventre.
“While inventory for new Class A product in Hollywood is increasing to meet the demand for high-end product, well-located, older buildings with reasonable rent levels will always be in high demand. If there ever comes a time when tenants can no longer afford the cost of nearby luxury product, buildings like these will be in a great position to remain at full capacity due to their relative affordability” Zander noted.
The buildings sold at a blended cap rate in the low 3% range, and the price per foot approached $400.
|
|
 Return to the Archive page
|
|
|
|
|
Printer-friendly Version
Email an Associate
