Lee & Associates-LA North/Ventura Transacts 53-Unit Multifamily Sale for $8.3 M
With multiple offers, asset sells at $50,000 premium over list price
LOS ANGELES – June 2, 2014 – Jim Fisher and Mike Smith, principals of Lee & Associates-LA North/Ventura, transacted the sale of a 53-unit multifamily property at 450 S La Fayette Park Place in L.A. for $8.3 million, a $50,000 premium over the listing price.
The property, consisting of 36 1-bedroom, 1-bath units and 17 2-bedroom, 2-bath units, was sold to a private investor at a 4.2 percent cap rate after the brokers received multiple offers on the listing.
“We are seeing a lot of interest in this area of Los Angeles, which is adjacent to Koreatown,” said Smith, who represented the buyer and seller with Fisher. “Our buyer, MJW Investments, expects to invest in a number of common area improvements because the company sees tremendous growth potential in the property. Investors favor this value-add strategy, and we’re seeing buyers aggressively seek out these types of deals.”
The unit sizes are quite a bit larger than comparable properties in the area,” Fisher added, “and the property has had a very low historic vacancy rate between 3 percent and 5 percent, making this a very attractive asset.”
The sellers, a private investment group, had owned the property for nearly 25 years.
The buyer purchased the property in a 1031 Exchange transaction.