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4/27/26
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Faulkner Capital Partners has purchased The Baxter, a newly constructed, 86-unit mid-rise luxury apartment situated at the base of the Hollywood Hills in Los Angeles. Completed in 2024, the seven-story property is located at 1818 N. Cherokee Ave, north of Hollywood Blvd and east of Highland Ave.
The seven-story property totals 85.8k sf of residential space above two levels of subterranean parking. The asset was designed and constructed to institutional standards, with a hotel-like amenity profile and modern construction quality that is increasingly difficult to replicate in today’s cost environment.
Developed by CGI and Wilshire Skyline, The Baxter features contemporary architecture, thoughtfully designed interiors, and a full suite of lifestyle amenities consistent with a hospitality-driven living experience. Its new construction profile minimizes near-term capital expenditure requirements while offering operational efficiencies and long-term durability compared to older-vintage assets.
Colliers Vice Chair Kitty Wallace represented all parties in the transaction, including three undisclosed sellers and the buyer, Faulkner Capital Partners (FCP). The property traded at a price exceeding $400 per square foot, underscoring continued investor demand for newly delivered, Class A multifamily assets. Achieving a quick cash close (under 30 days) from PSA to closing, the transaction occurred within a highly selective capital markets environment, where investors remain disciplined, and underwriting assumptions have reset. Demand continues to concentrate around well-located, high-quality assets that offer durable cash flow, limited near-term capital requirements, and the potential for long-term rent growth.
“We’re seeing capital become more selective, but it remains active for deals that are well‑priced and thoughtfully structured,” said Kitty Wallace. “Transactions that offer transparency, realistic assumptions, and a clear execution path are still moving forward. This deal reflects how liquidity is prioritizing certainty and disciplined underwriting in today’s environment, particularly in established urban markets where basis and long-term fundamentals are compelling.”
The sale reflects broader trends across Los Angeles’s multifamily market. While overall transaction volume remains below historical averages, deals continue to close for assets that meet today’s more rigorous underwriting standards, particularly stabilized or near-stabilized properties in areas with high barriers to entry. Measure ULA has increased exit costs for owners, discouraging development activity and elevating the value of existing, high-quality assets that would be difficult to replicate today.
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