Thank you for sharing!

Your article was successfully shared with the contacts you provided.

HOLLYWOOD-Hollywood Place Apartments LLC of Los Angeles has acquired the 112-unit Hollywood Place Apartments at 7400 Hollywood Blvd. for $21.3 million in what is called the largest multifamily deal in Hollywood this year, according to Hendricks & Partners, the listing brokerage for the property. Dean Zander of Hendricks & Partners, the listing broker for the complex, tells GlobeSt.com that the property was substantially renovated by the previous owner and that the new owner plans minimal cosmetic upgrades to the 95%-occupied, 22-year-old property.

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.