MWest Picks Up Iconic Hollywood Apartments

LOS ANGELES—MWest Holdings has purchased the Hollywood Tower, a 52-unit apartment complex in the Franklin Village neighborhood of Hollywood. The name of the seller and the purchase price of the property were not disclosed, however, sources unrelated to the deal have told GlobeSt.com that a joint venture between Black Rock and Alliance Realty sold the property for $19 million, or $366,000 per square foot.

“The Hollywood Tower is such a wonderful, iconic building, especially because it sits right off the freeway,” Karl Slovin, president of MWest Holdings, tells GlobeSt.com. “Anyone who loves architecture in Los Angeles knows the giant neon sign. To me, it was irresistible to buy a building that has that iconic quality. It is something that speaks so clearly to what we want to do. New construction is great, but these older buildings really speak to this golden age of Los Angeles. I think Los Angeles is really going through a new renaissance, and a lot of that is driven by real estate. I think it is pretty exciting what is happening here right now.”

Located at 6200 Franklin Ave. in Los Angeles, the property was originally built in 1929 and designed by architect Cramer & Wise. It was recently renovated in 2010, and MWest plans to continue the previous owner's renovations. “We are continuing along the lines of what the former owner was doing, while paying very close attention to the historical fabric of the building,” adds Slovin. The investor will renovate the interior units as leases roll, which may take some time as the property is currently 95% occupied. The exterior renovation plans include “reactivating” two outdoor patios, which will let the residents take advantage of the property's 360-degree views of Los Angeles. While the renovation will be done in phases with several different budgets, Slovin said that they expect to invest $1 million back into the building.

This is the company's second purchase of an iconic Los Angeles building this month. Last week, GlobeSt.com reported that MWest bought the Wilshire Royale, also an iconic Los Angeles building, for $32.5 million. These two purchases illustrate a slight shift in the firm's typical investment strategy. “This is a refining of our investment strategy,” describes Slovin. “If you look at our portfolio online, you can see that I have been interested in older buildings that need attention and need love. We are sort of amping it up a little bit by looking at buildings from the 1920s that haven't gotten the love that they deserve. What I am really becoming more interested in is that sense of place that a building like this offers to the community. The sense of place in Los Angeles is a hard thing to come by, and I think the older buildings can, if the program is fully developed, offer that to the tenants.”

According to Slovin, the firm will soon announce the purchase of another iconic Los Angeles building.