LOS ANGELES, CALIFORNIA (February 4, 2022) – Bryan Schellinger, managing director in Northmarq’s Nashville investment sales office and Steven Goldstein, vice president of Northmarq’s Los Angeles investment sales office arranged the sale of two multifamily properties located in Los Angeles, California. Both properties fit well into the trend of Buyer’s seeking properties constructed after 1978 and subject to the statewide rent control ordinance, AB 1482, but excluded from Los Angeles’ City Rent Control mandates (RSO).
301 North Alvarado: The 42-unit community, constructed in 1989, sold for $13.895 million ($323,139/unit and $453 per sq. ft.). The property was sold by a family trust offering the buyer a rare opportunity to acquire a mid-sized asset on the border of Echo Park, in a micro-market of Los Angeles where assets of this size rarely become available for sale. The Cap Rate at closing was just north of 4.00 percent.
“The Buyer, Optimus Properties, LLC, saw the positive leasing trends in this submarket coupled with the ability to increase current rents by the allotted amounts subject to AB1482. Additionally, the moderately improved condition of the property allowed the Buyer to implement a strategic value-add enhancement program. The Alvarado Collection fits well within the narrative of light-value-add deals, built after 1978, while still producing decent yields,” said Goldstein.
223 North Alvarado: The 23-unit community, constructed in 1989, sold for $7,000,000 ($304,347/unit and $465 per sq. ft.). Sold by the same family trust as 301 North Alvarado, the Seller elected to market the property for sale with NorthMarq as they continue to reposition their apartment building portfolio. The Cap Rate at closing was north of 4.00 percent.
“The seller has strategically been repatriating capital into other product types or out of state, and the sale of The Alvarado Collection affords him the opportunity to once again capitalize on this strategy. Alternatively, this purchase for the Buyer is a catalyst for a programmatic venture to acquire more assets within the same submarket, adding scale to their portfolio,” said Schellinger.