Lee & Associates-LA North/Ventura Transacts 10-Unit Multifamily Property Sale in Hollywood, CA
Listing drew 1-dozen offers in 2-weeks; closed all-cash: $3,210,000
LOS ANGELES – Sept. 9, 2014 – A 10-unit apartment building at the foot of the Hollywood Hills sold for $3,210,000 just weeks after it was listed, according to Justin Cusumano, an associate of Lee & Associates-LA North/Ventura who represented both the buyer and seller in the transaction.
“We attracted one dozen offers within a week and a half for this highly-desirable property due to its prime location, newer construction, and a marketing strategy that led to a highly competitive bidding environment,” Cusumano said. “Rents had not been raised in 11 years, which will create a 40 percent rental upside that was recognized and capitalized on by an astute investor who will soon be realizing a +6% cap rate on a Class-A, non-rent controlled property.”
The property, located at 1817 Garfield Place, was built in 2002 by the seller. It consists of 10, 2-bedroom, 2.5-bathroom townhouse style units of about 1,120 square feet each with central air and heat, balconies, Pergo wood flooring and subterranean parking with two spaces per unit. Two of the units are tri-level.
The location is near the heart of Hollywood and is close to numerous shopping centers, Runyan Canyon and many entertainment, production, and recording companies.
“Despite being the very first offer submitted on what was the second day of marketing, the new owner endured through the receipt of an additional eleven offers until his all-cash bid with a five-day inspection period was finally accepted, “ Cusumano said. “Based on local market rents, the projected return on this investment will be twice what you could expect to find in the area, so needless to say, we had quite a lot of interest.”
After selling over $23 million of real estate in the area this year, “this sale was certainly the most exciting,” he added.