Beverly Hills Apartment Investor in it for the Long Term with Low Cap Rate
Beverly Hills Apartment Investor in it for the Long Term
with Low Cap Rate
Beverly Hills, CA, Tuesday, August 04, 2015– Vice President Kevin Kawaoka with NAI Capital completed the sale of The Commodore a 14-unit apartment complex located at 360 South Rexford Drive in Beverly Hills, Calif. Kawaoka, represented both the seller and buyer in the transaction. The seller, Tower Ventures LLC, sold to local investor Paul Ling for $4.7 million or $600 per square foot.
The Commodore, built in 1961 is a two story 7,868 square foot apartment building with an average unit size of 562 square feet. The property is situated in a prime area just 3 blocks from The Golden Triangle in Beverly Hills on South Rexford Drive. At the time of the sale one unit was vacant in the building. However, there was no discount for the vacancy- the sale price represented a market low 2.5% cap rate. The vacancy in Beverly Hills for apartment units of similar size is extremely low due to heightened demand, which has contributed to escalating rents and outstanding sales prices with exceptionally low cap rates. The seller was extremely pleased to obtain his price, which on a square foot basis, is the highest on record for 2015 in Beverly Hills 90212.
Kawaoka said, “The buyer was looking to invest in an A location for a long term hold, with future upside potential. This asset fit his investment needs perfectly.” The buyer plans to significantly renovate the units to gain top of the market rents and keep the property in the family for a long time. Kawaoka added, “On a more fundamental level Beverly Hills is one of the most recognizable and desirable cities to live in Southern California. Rental units will remain in demand there. The cap rate was low going in, but the buyer will make the upgrades to the units and raise rents over time to achieve his long term goal.”
About NAI Capital
NAI Capital is a leading Southern California commercial real estate firm headquartered in Encino, California. With 14 offices throughout Los Angeles, Orange, Riverside, San Bernardino and Ventura Counties, NAI Capital is the Southern California member of NAI Global, a premier real estate service network in 55 countries with 375 local offices and 6,700 local market leaders spanning the globe. Since 1979, NAI Capital clients have built their businesses on the power of our expanding network. Our extensive services include: multi-site acquisitions and dispositions, sublease, tenant representation, lease administration and audit, investment services, due diligence and related consulting and advisory services.
NAI Capital Brokerage CA BRE #00806840.
To learn more, visit www.naicapital.com