LOS ANGELES-Cohen & Associates and Highroad Realty and Management has acquired a 60-unit Westwood multifamily complex for $21.5 million. Located at 886 Hilgard Ave., the property is in a highly desirable neighborhood near the UCLA campus with a strong demand for student housing.
Acquisition opportunities in the neighborhood are rare. The seller, whose name is undisclosed, purchased the property in 1974 from a fraternity, and, in 1976, developed the property into a multifamily complex. “The pocket of 125 apartment buildings north of Wilshire around UCLA is arguably the most desirable in Westwood, which is why very few ever change hands,” says Marcus & Millichap‘s Tony Azzi, who along with George Azzi represented both the buyer and the seller in the transaction. “It is not surprising to see a building under the same ownership for decades. This one in particular had the same owner for nearly 40 years.”
The four-story apartment community has one- and two-bedroom units and two-story townhouses. Several of the units feature fireplaces and balconies. The property also features an onsite four-story and gated parking structure. Although the property has good bones, the buyers believe it is in need of renovation and plan to invest “extensive capital.” The have hired David Cho, a feng shui expert, and designer James Rosen to work on the property.
“Our plan is to make significant upgrades to both the interior and exterior. It will include upgrades to the building systems, modernizing the interiors and introducing technology to make them more functional and appealing to the international student population at UCLA,” says Gidi Cohen, president of Cohen & Associates. The renovation plans include the addition of a gym and a rooftop lounge with sun deck, barbecue and fire pit for the building and upgraded kitchens and bathrooms and new washers and dryers for interior units.
Multifamily acquisitions are a rarity in Westwood; however, there has recently been some movement in the office sector. Earlier this year, GlobeSt.com reported that the five-story Westwood Terrace office building changed hands for $54 million in an off market transaction.