Two Westside Multi-Family Sales for $9.3M

LOS ANGELES-Two apartment complexes in the Westside area of Los Angeles have been purchased by 11 Federal Ave. West Ltd. The two buildings together comprise 51 units. The aggregate sales price was $9.3 million.

The first transaction was for a 20-unit apartment complex located at 120 South Swall Dr. The site is located in the Westside area north of Burton Way and adjacent to Beverly Hills. The property was sold by Mr. Halavy. The transaction value was $3.4 million. That figures out to be a per-unit cost of $70,000.

The 120 South Swall Dr. property was 100% percent occupied at the time of sale. It was built in 1964, and is a three-story structure with one level of subterranean parking. The capitalization rate on the deal measured 5.2%.

The other transaction is for a 31-unit complex located at 417 South Barrington Ave. in the Brentwood section of Los Angeles, also the Westside location of the city. The $5.9 million purchase by 11 Federal Ave. West includes a nearly one-acre lot of 34,160 sf that is LAR-3 zoned, meaning it is entitled for medium density apartment or condominium development.

Private investors Clayton & Latham Williams, located in Idaho, sold the 24,771-sf apartment building for $238 per square foot and close to 13 times gross. The building was erected in 1954 and is a two-story high structure. At the time of sale there was only one vacant unit. The capitalization rate on the deal was 4.8%.

Both of these transactions were negotiated and escrow closed within record time of six business days, according to a broker on the deal. The swiftness of the sales is a testament to the strength of the current apartment market, particularly throughout the Westside, the broker adds.

In terms of renovation, neither property is expected to receive any, according to the broker. Both buys are a long-term hold for the buyer, the broker notes, and are being held for appreciation over time.

Hamid Soroudi of Charles Dunn Co. represented the buyer, 11 Federal Ave. West, Ltd., and the sellers on both transactions. Mr. Soroudi has successfully negotiated and closed escrows valued at over $500 million during the past few years.