$28M Multifamily Deals Offer Upside

LOS ANGELES-Buyers who have acquired four apartment complexes totaling 189 units for nearly $28 million all stand to benefit by upside potential in the deals, one of which includes the prospect of developing 29 new units, according to the brokers in the transactions. The sales included three in Hollywood in which Madison Partners negotiated the deals and one in Westwood that was brokered by Team Lustig-Bower of CB Richard Ellis.

The Hollywood complexes include two adjoining apartment buildings on Orange Drive and one on North Cherokee Avenue, according to Darin Beebower of Madison Partners, who was the listing broker on all three. The 70-unit Hollywood Biltmore, directly across the street from the Kodak Theater at 1745 N. Orange Dr., sold to Midson LLC for $7.5 million. Midson bought the property, which was built in 1958, from 1333 Las Palmas Partners LLC.

Orange Tower Associates bought the 36-unit Orange Towers at 1757 Orange Dr. from Orange Partners for $6.2 million, and Cherokee Avenue Property-Franklin Pointe Associates LLC bought a 53-unit complex at 1825 N. Cherokee Ave. from N. Cherokee Partners LP for $8.3 million. Hollywood has been one of the centers of development in Los Angeles of late, and the three transactions "reflect the increasing value of attractive residential buildings with tremendous value-add potential in a resurgent urban center with a vibrant street life," Beebower says.

In the Westwood transaction, Adrienne Barr of Team Lustig-Bower reports that buyer Livsoraya LLC acquired a total of 30 units in two buildings at 510 and 516 Landfair Ave. from the Wade Family Trust of Los Angeles for $5.85 million. The buildings were built in the 1950s and are located two blocks from UCLA, with a tenant base in both buildings that is primarily UCLA students.

Together the lots total approximately 23,537 sf and have development potential for approximately 29 residential units, Barr notes. The buyer was represented by Michelle Pine.