Sunday, April 6, 2008

West Hollywood Income Property Round-Up: 1st Quarter 2008

808 Westmount Avenue - West Hollywood California Income Property

808 Westmount Avenue

West Hollywood (Area 10) -- In the 1st Quarter of 2008, 10 multi-unit properties sold in West Hollywood. Unit mix was (2) x 16-unit, (2) x 10-unit, (1) x 9-unit, (1) X 8-unit, (1) X 3-unit and (3) x 2-unit. The top 2 sales were 16-unit properties 909 Croft ($5.2 million for 17,232 sq ft) and 808 Westmount ($4.195 million for 13,368 sq ft). Sales net to $301/sq ft and $313/sq ft, respectively. The 2 smallest sales were 8850 Cynthia and 8854 Cynthia. These Traditional 2-unit, 1,248 sq ft properties each have 2 x 1 br and 1 ba and sold for $719,000 and $672,000, respectively.

Income properties in West Hollywood cannot be compared on an "apples to apples" basis since: 1) some buildings are subject to West Hollywood Rent Control, others are not; 2) Rent-controlled unit mix may vary for those buildings subject to rent control; 3) West Hollywood neighborhoods vary widely in terms of quality (in general, the further west, the more desirable the neighborhood); 4) Some properties are valued on redevelopment potential, not on income; and, 5) for smaller properties, actual square footage may differ from Assessor's square footage.

The number of income property transactions and the high price of some of these transactions illustrate that investors are still seeing opportunity in this city. Rental demand remains consistent; in spite of the current economic gloom, local landlords still rely only on FOR RENT signs posted in front of their buildings to attract tenants.