A LA Multifamily success story in Melrose HIll
8-Unit Closing Completes 90004 Portfolio Sale
101 N Kenmore Ave, Los Angeles, CA 90004
101 N Kenmore Ave sold for $1.34M after multiple offers, completing the owners’ 3-property portfolio as the buyer worked through the condition of the 1920s building.
Offering Price
$1,350,000
City
Melrose HIll
Current CAP
8.55%
Price per unit
$168,750
Lot Size
7,711 SF
101 N Kenmore
Offering Price
$1,350,000
Number of Units
8 Units
Bldg. Size
7,680 SF
Price per Foot
$176
Year Built
1925
Market CAP
11.71%
Zoning
LAR3
Background
101 N Kenmore Ave was the final property in the same 3-building 90004 portfolio as 4707 Beverly Blvd and 436 Normandie Place. After decades of owning Los Angeles multifamily properties, the sellers were ready to cash out and step away from the day-to-day demands that came with operating several older apartment buildings.
The 8-unit property has a Spanish-style exterior, gated front courtyard, and a Melrose Hill location near Chapman Market, Koreatown, and Larchmont Village. The building also offered approx. 25% rental upside, while ownership had already completed work to the plumbing, sewer, roof, and other major systems.
There was still work ahead. As an older vintage building, deferred maintenance and future interior needs meant buyers had to account for additional costs after closing. At the same time, they were looking at the the income in place, the location, and the remaining rent upside.
That balance became increasingly important as the eventual buyer moved through diligence.
Challenge
Multiple buyers understood the potential at 101 N Kenmore Ave. The challenge was getting the eventual buyer comfortable with the condition of a 1920s building that still required work after closing.
Ownership had already addressed several major systems, but deferred maintenance and future interior work remained. As diligence moved forward, the buyer had to weigh those costs against the current income, Melrose Hill location, approx. 25% rental upside, and work that had already been completed.
The final pricing gave the buyer enough room to take on what remained. From there, keeping the completed improvements and overall value of the property clear helped move the transaction through diligence and toward closing.
Result
101 N Kenmore Ave sold for $1.34M after generating multiple offers and spending 71 days on market. The transaction closed 137 days from list to close.
For the buyer, the final price left room for the remaining work.
The closing also completed the sellers’ 3-property 90004 portfolio sale. Together, 4707 Beverly Blvd, 436 Normandie Place, and 101 N Kenmore Ave represented 23 units and $4.125M in closed sales.
For the owners, Kenmore was more than the third closing. It completed the sale of a portfolio they had spent decades owning and allowed them to fully step away from the day-to-day responsibilities that came with it.
For owners of other older Los Angeles apartment buildings, the takeaway is straightforward. Deferred maintenance does not automatically prevent a sale. The price needs to account for the work, and the buyer needs a clear understanding of what has already been completed and what they will still be taking on.
