LOS ANGELES-A locally based private investor has acquired a 45-unit the luxury apartment complex at 585 Rossmore Ave. for $12.4 million in a deal that produced "a low cap rate and a high gross rent multiplier," according to Sperry Van Ness. Kitty Wallace of Sperry Van Ness in Los Angeles represented both the buyer and the Los Angeles-based seller, also a private investor.
The property, in Hancock Park near the 10 and 101 freeways, was "aggressively priced" despite being in a flood zone, according to Wallace. The deal closed at a 4.3%cap rate, compared with an average cap rate for similar properties in the area of more than 4.8%.
The gross rent multiplier worked out to 14.36, compared with an average of 13.65 for comparable sales in the area. Built in 1990, the complex was 97% occupied at the time of the sale.
The 585 Rossmore building consists of 22 one-bedroom, one-bathroom units and 23 two-bedroom, two-bath units with rents ranging from $1,406 to $1,768. The building includes a rooftop recreation area, a heated pool, a fitness center, city views vaulted and high ceilings, double glazed windows, balconies and walk-in closets.
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