Monday, August 23, 2010

Hollywood Multifamily 2nd Quarter 2010: Same Old Song And Dance, GRMs in 8.4 - 10.9 Range

As we have frequently reported, Hollywood is credited as being the hottest sub-market in the five county Southern California region. With the arrival of the W Hollywood Residences crowning the intersection of Hollywood and Vine (with condos priced just under $1 million and up), the neighborhood has indeed arrived for the 21st century. Hundreds of new rental units have come online, and Hollywood has reasserted itself as a central hub of the city where its residents live, work and play.

Given its rising star, it should come as no surprise that Hollywood racked up some impressive sales during the 2nd Quarter of 2010.

The largest sale was 920 Wilcox Avenue, a 26-unit building that sold for $7,250,000 and a GRM of 10.9. This building has 18,587 sq ft of living area, and built in 1990, is not subject to Los Angeles rent control. The just-rehabbed property also offer its owner the possibility of condo conversion in the future, when better times are at hand.
Another sale that tipped the scale was the "trifecta" of 6228-6234-6238 De Longpre Avenue.  These three buildings, comprising 62 units, were sold as one package for $5,875,000 or an 8.4 GRM.  The structures were constructed between 1925 and 1937 and contain a total of 34,400 sq ft.  The list price for the three buildings was $6.3 million.
1300 N Alta Vista Street, a 10 unit building constructed in 1936, sold for $2,625,000 and a 10.3 GRM.  This property traded at a significant discount to its $3.3 million list price.
823 N Hudson Avenue, with 8 units and 6,795 sq ft of living area, sold for $1,175,000, $75,000 below its $1,250,000 list price. This 1963 building traded at a 10.6 GRM.

We love Hollywood (among other neighborhoods). If you want to buy or sell apartment buildings here (or elsewhere), please contact us by calling Adner Realty Group at (310) 845-6810 or clicking on this link to send us an email.

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