SUCCESS STORY
10 Unit Value-Add Sale in Prime WeHo
1116 N Spaulding Ave.
A Compass BH residential agent reached out to us to help the sellers cash out. Despite rising interest rates, we got this deal to the finish line.
Price
$
3,200,000
City
West Hollywood
Current Cap Rate
4.41
%
Price P/ Unit
$
320,000
Lot Size
6,419
SF
1116 n spaulding
About the Property
Located in a prime WeHo location, just north of Santa Monica Blvd, this 10-unit value-add property was minutes from several neighborhood hubs (SM Blvd, Fairfax Ave and La Brea Ave). 1116 N. Spaulding featured (2) 2-Bdrm and 2-Bath units and (8) 1-Bdrm units. This corner lot property with alley access featured a gated subterranean parking garage with 8 parking spaces, an additional parking area with 5 spaces, a community laundry room and a new roof.
Price
$
3,200,000
City
West Hollywood
Current Cap Rate
4.41
%
Price P/ Unit
$
320,000
Lot Size
6,419
SF
Background
Located just north of Santa Monica Blvd & Fairfax Ave and offering significant rental upside, this 10 unit property was a "diamond in the rough" located in the heart of a highly-coveted and super-walkable neighborhood. A Compass Beverly Hills agent, who had an established relationship with the seller, reached out to KST to help the family cash out. We marketed this property in conjunction with a Spanish-style fourplex blocks from The Grove.
Challenge
Despite the noticeable upside, potential investors felt the price was steep because the property featured a majority of long-term tenants and low rents. Additionally, we listed the property in early April, when interest rates were around 4.25%. As rates rose towards 6%, Kenny knew he had to manage the stakeholders’ expectations and identify an experienced investor unfazed by an evolving market.
Result
Kenny identified an experienced repeat client who opened Escrow in early April. As other broker’s deals fell apart in an increasingly volatile market, Kenny’s “down market” experience helped navigate the buyer and seller to the finish line. After solving several probate/title obstacles, the deal closed at $3,200,000. The sellers were thrilled to cash out, and our buyer is delighted with the acquisition, seeing this as a massive long-term win in a premium LA rental market.
