Upgraded 112-Unit Complex Sells for $21M

Zander says that the buyer owns and manages several nearby apartment buildings and believes this sale represents the continued demand by the private sector for well-located institutional-quality assets. Zander calls the complex "one of the premier apartment communities in Hollywood," with a wide variety of unit types, excellent amenities and several million dollars in recent renovations.

The property generated numerous offers from private families, regional investors and national operators. The bidders were attracted to the "excellent location, impeccable condition and optimistic growth assumptions for the entertainment industry," Zander says.

Hollywood Place is a five-story complex situated midway between La Brea and Fairfax, minutes from the 101 Freeway, and is convenient to many of the largest employers, entertainment options, shopping districts and hiking trails that make Hollywood so attractive to tenants and investors alike, according to Zander. The units range from studios to two-bedroom units in multiple floor plans measuring from 500 to 1,000 square feet, with in-place rents ranging from $1,200 to nearly $2,800. Amenities include a renovated swimming pool and sun deck, a fitness center, outdoor fireplace and lounge. The two-level parking garage provides a total of 158 spaces.

Zander says that the selling price "reflects an absolute awareness of today's underwriting, fundamentals and capital markets." He says that the buyer recognized a unique opportunity to purchase a trophy asset in a market with very low ownership turnover combined with recast rental rates in an excellent location.

"The buyer was well-positioned to capitalize on market conditions, patiently waited through a somewhat arduous selling process and is purchasing well-below replacement cost; they will reap the benefits accordingly," Zander says. Jim McBirney of CapMark secured the borrower's new 10-year 75% debt at a fixed rate of 5.39% via Fannie Mae's DUS program.