LOS ANGELES-A portfolio of three REO apartment properties totaling 29 units at 4122, 4130 and 4136 Palmwood Dr. in the Baldwin Hills section has sold for $1.725 million after attracting 10 offers, according to Lee & Associates brokers who negotiated the deal. Lee & Associates-Investment Services Group principals Robert Leveen and Matthew Sullivan represented both the buyer, a private investor, and the seller, East West Bank.
“We’re seeing healthy interest from buyers for these types of value-add sales,” said Leveen. “The highest bidders were all-cash buyers who already own property in the area and understand these opportunities.”
East West Bank acquired the original notes on the properties when the first lender, United Commercial Bank, failed and was taken over by the FDIC, and East West Bank acquired its assets. The properties were foreclosed upon by the second trust deed holder in late 2009.
Subsequently, East West Bank foreclosed in September, 2010. During the transition, which took about a year, a number of tenants were not paying rent, and by the time the sale closed, vacancies had increased from two to nine.
“Our buyers and bidders knew that, once they cleaned up the rent roll, they could bring in new tenants at market rates and get good cash flow and returns on their investment,” Leveen added. The portfolio includes eight units at 4122 Palmwood Dr., 11 at 4130 Palmdale Dr. and 10 units at 4136 Palmwood Dr.
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