LOS ANGELES—A 10-unit apartment building at thefoot of the Hollywood Hills sold for $3,210,000 just weeks after itwas listed, according to Justin Cusumano, anassociate of Lee & Associates-LA North/Venturawho represented both the buyer and seller in the transaction.
"We attracted one dozen offers within a week and a half for thishighly-desirable property due to its prime location, newerconstruction, and a marketing strategy that led to a highlycompetitive bidding environment," Cusumano said. "Rents hadnot been raised in 11 years, which will create a 40% rental upsidethat was recognized and capitalized on by an astute investor whowill soon be realizing a +6% cap rate on a class-A, non-rentcontrolled property."
The property, located at 1817 Garfield Place, wasbuilt in 2002 by the seller. It consists of10, 2-bedroom, 2.5-bathroom townhouse style units of about1,120 square feet each with central air and heat,balconies, Pergo wood flooring and subterranean parking with twospaces per unit. Two of the units are tri-level.
The location is near the heart of Hollywood and is close tonumerous shopping centers, Runyan Canyon and manyentertainment, production, and recording companies.
"Despite being the very first offer submitted on what was thesecond day of marketing, the new owner endured through the receiptof an additional eleven offers until his all-cash bid with afive-day inspection period was finally accepted, " Cusumano said."Based on local market rents, the projected return on thisinvestment will be twice what you could expect to find in the area,so needless to say, we had quite a lot of interest."
After selling over $23 million of real estate inthe area this year, "this sale was certainly the most exciting," headded.