Lee & Associates-LA North/Ventura Transacts Three-Property Multifamily Sale for $14,540,000
Per-unit price is more than double the median sale price in the Westwood Los Angeles submarket
LOS ANGELES – June 23, 2015 -- Lee & Associates-LA North/Ventura Principal Mike Smith and Managing Director Jim Fisher executed three multifamily property sales totaling 20 units in the Westwood submarket of Los Angeles for a combined consideration of $14,540,000.
The team represented the seller, a private investor, and the private buyers in two of the transactions, which fetched a staggering $727,000 per door, more than double the median per unit price of all multifamily buildings sold in the West Los Angeles/Westwood submarket of Los Angeles in the first quarter of 2015.
“These properties are somewhat unique,” said Smith. “Catering to a student population drives rental rates up substantially and, as a consequence, the per door sale price was well above market. At the same time, the redevelopment potential was especially important for these buyers because they already own neighboring properties.”
The buildings cater to UCLA students, and typically several students share a unit, so the resulting rents are much higher than average, driving sale prices up as well. Equally important, the area is zoned for high-density housing, and the buyers wanted to protect their ability to redevelop the site at some point down the road.
The properties, located at 732-738 Levering Ave., 10954 Roebling Ave. and 10977 Roebling Ave. in the Westwood Village neighborhood, are just blocks from the UCLA campus and offer myriad restaurants and nightlife options in walking distance, making the location widely favored by UCLA students. Although the properties were built between the 1930s through the 1950s, redevelopment that has recently taken place in the Westwood Village area has pushed rental rates higher for older buildings as well, and market rates for units of this size in the area can range as high as $5,000 per month.
LevRo, at 732-738 Levering Ave., consists of eight units averaging 1,561 square feet. The second building, 10954 Roebling, is also an eight-unit property totaling 11,712 square feet. Blue Castle at 10977 Roebling is a quadriplex with units averaging 1,225 square feet.
“Our buyers understand the dynamics in this submarket, and the shortage of supply, choice location for off-campus student housing and high rental rates allowed us to achieve a record setting sale price,” said Smith.