HOLLYWOOD-The sale of a stabilized apartment here, a bankruptcydeal and a note sale illustrate that every deal today is unique,according to the brokers who negotiated them. Principal Matt Ayerof Agoura Hills-based RcmaGroup, who engineered the deals alongwith partner Ryan Cassidy, tells GlobeSt.com that the three sales"illustrate the market we are in today" in that all three of thetransactions are "uniquely different."

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In the Hollywood sale, a local buyer acquired a 30-unitapartment complex at 2330 N. Cahuenga Blvd., across from theHollywood Bowl, in a sale that generated 20 offers in a matter ofdays. Ayer says the property generated such strong investorinterest because of the quality of the complex, which was built in1987, its location near the Hollywood Bowl, its 98% occupancy andits lack of rent control.

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Price was not disclosed, but Ayer says the property, which hadnever traded before, closed at a cap rate in the range of 5.5%,with Ayer and Cassidy representing both the buyer and the familytrust that sold the property. "In that location, for that type ofproduct, there is hardly any inventory, and there is a lot of moneychasing it," Ayer says. He notes that rents in the building arebelow-market, which creates the potential for upside in anon-rent-controlled building. He also notes that, although therewere no contingencies to the transaction, the buyer was able to geta 65% loan.

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In the note sale, a Northern California developer and investorpaid $1.56 million for a non-performing loan secured by a 110-unitapartment complex in Sacramento on which the original loan amountwas $5.8 million. Ayer says the key to the deal for the buyer ofthe note was to acquire it only a short time before a scheduledtrustee sale where the property would be offered for sale for the$5.8 million par value of the note. The buyer's plan was to taketitle to the property through foreclosure, then repair and improvethe property to hold it for the long term, Ayer says. The seller ofthe note, which was more than 12 months delinquent, was a nationalbank.

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In the Chapter 11 bankruptcy deal, Texas-based Amani Investmentsbought a 95,000-square-foot shopping center in Houston called theCommons at South Green, paying $5.5 million at a 12.74% cap rate,according to Ayer. RcmaGroup advised both the buyer and the seller,garnering multiple offers, mainly from private investmentgroups.

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Ayer notes that the buyer is an owner-user that will use asignificant portion of the shopping center space itself andacquired the property at a low cost per square foot and high caprate.

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