HOLLYWOOD-Vista Investment Group LLC of Los Angeles has acquireda 100-unit mixed use apartment and retail project from ChateauHollywood LLC of Los Angeles in a short sale that closed at a 1%cap rate that will rise to 8.5% when the project is fully leased,according to brokers who negotiated the deal. Ron Harris, anexecutive vice president in the Downtown Los Angeles office ofMarcus & Millichap, tells GlobeSt.com that, "The actual caprate at the closing was under 1%. However, once the buyer completesthe renovation and lease-up program, the pro-forma cap rate will beapproximately 8.5% for a prime Hollywood location."

Harris and Marcus & Millichap associate Maurius Jeffery werethe listing agents for the property, which is at 1963 N. CahuengaBlvd., just north of Franklin Avenue and just south of the 101Freeway. Harris and Jefferey marketed the property as a short salefor 30 days during which time there were more than 30 tours of thecomplex, which generated double-digit offer activity.

Harris explains that the sellers worked out an agreement withthe lender to allow him and Jeffery to list and market the propertybefore foreclosing on the asset. The transaction closed on anon-contingent basis after a nine-day escrow.