LOS ANGELES-Prometheus Real Estate Group Inc. of San Mateo has acquired the 80-unit Franklin Plaza Apartments from R.W. Selby and Co. of Los Angeles for $24 million. The property, which was built in 1974, is a recently renovated complex at 7230 Franklin Ave. that does not fall under the City of Los Angeles rent control because it is classified as "luxury exempt."
The transaction represented a rare opportunity for a buyer to acquire "a recently renovated Class A institutional asset in the most dynamic, upscale area of Hollywood," according to Gregory Harris, vice president of investments in the Encino office of Marcus & Millichap.
The Franklin Avenue property consists of one three-story building on a lot of 36,634 sf, about 1.4 miles from the Sunset Strip and 2.8 miles from the popular Grove shopping venue. Its 80 units are all one- and two-bedroom apartments, with common area amenities including a pool, a spa, a fitness center and a courtyard area with fountain.
Prometheus recently acquired another complex nearby, the 298-unit Serravella Apartments at 1710 North Fuller Ave., which will present economies of scale for Prometheus in the area, the company says. Will Roos, vice president of acquisitions at Prometheus, comments: "In a neighborhood defined by quality our primary objective will be to distinguish the Franklin Plaza from other properties in the area by providing better amenities and finishes than currently being offered in the rental market."
Prometheus plans to further renovate both unit interiors and common areas of the Franklin Plaza. Units will feature new cabinetry, counters, appliances, washer/dryers and new flooring along with interior upgrades.
Even though condos in the neighborhood north of Hollywood Boulevard sell for $650,000 to well over $1 million and homes range from $1 to $3 million, "renters still struggle to find an apartment with a washer and dryer or even granite counters," Roos says. Common areas of the Franklin Plaza will be redesigned also to include designer-furnished courtyards, a business center and media lounge.
The new fitness center will overlook the redesigned pool and spa. Renovations will be carried out by Prometheus' in-house construction and design team, which has completed the renovation of more than 2,000 units within the Prometheus portfolio.
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