Seniors Complex Trades Above List at $57M

Wallace says that she was "not at all surprised" that the asset, which is a 12-story building at 740 S. Olive St., generated so many qualified offers in such a short period of time. It is extremely rare that a property of this size and condition in such an exceptional location comes to market, she explains. "Also, senior housing is a safe investment in today's economy, especially considering that Los Angeles is home to more senior citizens than any other county in the nation," Wallace adds.

Related will continue to run the property as affordable housing for low-income seniors and plans on investing another $9 million in renovations and upgrades to the building. Wallace notes that she has seen "a tremendous need for affordable housing in recent years, especially considering the high cost of living in Los Angeles." She calls the sale a "perfect example that the demand for low-income housing far outweighs the current supply."

Originally built in 1922 and completely rebuilt in 1979, this non rent-controlled building is 100% occupied with a 100-person "qualified" waiting list. The property has posted 99% historical occupancy with a turnover rate of less than 10%. The unit mix consists of 33 studios and 276 one-bedroom, one-bath units with monthly rents ranging from $980 to $1,083.

The Art Deco style property features architectural details such as murals, frescos on the ceiling, gilded elevators and decorative moldings. Common area amenities include security card access, a spacious lobby with a furnished waiting area, lounge/dining area, meeting room, leasing office, landscaped rooftop deck with shuffle board court, open air courtyard, laundry facilities and gated subterranean parking.

The existing HUD Housing Assistance Payments contract which expires in May of 2009 is in the process of being extended by the buyer for an additional 20 years. Wallace says that HUD "was extremely efficient and helpful in the process of approving the new HAP contract in a timely manner."