Small Multifamily, Office Deals Drive Market

In the Pasadena transaction, an individual buyer acquired the apartment complex, which is at 390 Pasadena Ave., from another private investor for $2 million. According to associate Han Widjaja in the Downtown L.a. office of Colliers International, the property traded at a 4.17% cap rate and 16.36 gross rent multiplier. This is "evidence that there are still buyers in this tight market who are willing to pay for a quality investment property," Widjaja observes.The property, built in 1948, was 90% occupied at the time of the sale.

In the Valley Village deal, senior vice president Timothy C. Macker Jr. of Coldwell Banker Commercial Westmac reports that an owner-user, the Jerry Vande Sande 2005 Revocable Trust, acquired the property from Hollywood Partners for $1.9 million. The office building, at 12155 Riverside Dr., is a two-story structure that was built in 1967 and was 100% occupied by two tenants at time of sale, including the seller of the property.

"The buyer was a user, which fit the profile for this type of asset," notes Macker, who represented the seller. The new owner plans to remodel the building and occupy the space vacated by the seller, which comprises approximately 80% of the building. The buyer was represented by Thomas Specker of Lee & Associates.

In the North Hollywood transaction, 6733 Bakman LLC bought the 22-unit apartment complex at 6733 Bakman Ave. from Jermo LLC for $1.7 million in a deal brokered by vice president Rick Raymundo of the Downtown L.A. office of Marcus & Millichap. Raymundo, who sold this property in 2007 to the Jermo LLC and represented the buyer in the current transaction, comments that, "Despite the current challenges in the credit and rental markets, apartment owners who are willing to accept market prices and cooperate with buyers are still able to successfully sell their properties."

Raymundo notes that, once the property was under contract, the seller agreed to complete repairs requested by the buyer and, in exchange, the buyer removed contingencies and closed escrow without asking for a price reduction. "The buyer removed all contingencies within 10 days and closed all cash," Raymundo adds.