A LA Multifamily success story in Hollywood
Hollywood 9-Unit Sold at 95% of List Price
1336 N Citrus Ave, Los Angeles, CA 90028
1336 N Citrus Ave closed at $2,200,000, or 95% of the original list price, after identifying a 1031 exchange buyer who fit the asset and could execute within a 21-day escrow.
Offering Price
$2,200,000
City
Hollywood
Current CAP
6.03%
Price per unit
$244,444
Lot Size
7,297 SF
1336 n citrus ave
Offering Price
$2,200,000
Number of Units
9 Units
Bldg. Size
7,123 SF SF
Price per Foot
$309
Year Built
1962
Market CAP
7.59%
Zoning
LAR3
Background
1336 N Citrus Ave is a 9-unit multifamily property located one block south of Sunset Blvd and one block west of Highland Ave. The property sits approx. 0.5 miles from Hollywood Blvd, with direct access to West Hollywood, the Melrose District, and several of Central Hollywood’s most active entertainment and retail corridors.
The building is comprised of (2) 2-bed / 2-bath units and (7) 1-bed units. Built in 1962, the property includes controlled access, a community laundry room, and front and rear parking. The building had also recently completed a soft-story seismic retrofit, subject to buyer verification.
The seller was a long-standing KST client who had been actively repositioning out of the LA multifamily market. Over the past 3 years, our team worked with them on multiple transactions across the city. After strong outcomes on prior listings, they returned to us for 1336 N Citrus Ave with the goal of a clean and efficient sale.
Challenge
Even with strong location fundamentals, buyer sentiment was selective. At a 5.73% CAP and 11.00 GRM on current rents, 1336 N Citrus Ave was being compared against more traditional value-add opportunities in Hollywood trading closer to a 6.25% to 6.50% CAP and sub-10 GRM. With interest rates in the mid-6% range, many leveraged buyers struggled to justify the deal based on in-place income.
In most cases, the property did not pencil cleanly with new debt. That narrowed the realistic buyer pool. The most likely buyer was either a 1031 exchange buyer or an all-cash investor focused on stability, rent flexibility, and long-term hold characteristics. The challenge was not generating activity. It was identifying a buyer who fit the deal and could actually close.
Result
After 2 weeks on the market, an outside agent introduced a 1031 exchange buyer acquiring his first multifamily asset after selling a commercial property. The buyer was familiar with the submarket and understood the long-term positioning of 1336 N Citrus Ave.
Escrow closed in 21 days at $2,200,000, or 95% of the original list price.
In a market where pricing and financing continue to shape buyer behavior, the outcome reflects the importance of matching the asset with the right buyer profile. Well-located properties still trade, but execution depends on knowing where the real buyer pool is and moving efficiently once that buyer is identified.
