SUCCESS STORY
$500,000 Per Unit Over-Asking Sale in East Hollywood
1758 N Kingsley Dr.
A Compass Beverly Hills agent, who had an established relationship with the Seller, reached out to KST to get an off-market deal done.
Price
$
4,000,000
City
East Hollywood
Current Cap Rate
2.79
%
Price P/ Unit
$
500,000
Lot Size
10,840
SF
1758 n kingsley
About the Property
1758 N Kingsley featured (8) 2-bdrm. and 2-bath units minutes from several neighborhood hubs in East Hollywood and Los Feliz (N. Vermont Ave, Hillhurst Ave and Thai Town). The property consisted of a front two-story duplex and back three-story structure sitting on a spacious 10,830 lot zoned LAR3.The back structure, featuring 6 units, was built in 1987 and are not subject to RSO (only AB1482). These units presented a significant value-add opportunity, as rents were approx. 52% below market compared to renovated units in the area.
Price
$
4,000,000
City
East Hollywood
Current Cap Rate
2.79
%
Price P/ Unit
$
500,000
Lot Size
10,840
SF
Background
Featuring a front duplex and back structure built in 1987 (6 units subject only to AB1482), the subject property was a prime value-add investment property in East Hollywood. Despite a number of large-scale developments and signs of change over the last several years, the Seller was tired of property management headaches and wanted to capitalize on a surging multifamily market fueled by low interest rates.
Result
After one week of being listed, Max identified an outside agent who represented a 1031 exchange client; and submitted an offer $200,000 over the asking price. Despite economic uncertainty, escrow closed in 45 days at $4,000,000. Safe to say, our Seller is thrilled with the speed and outcome of the sale, cashing out 90 days after signing the listing agreement and walking away with extra cash in his wallet. Closing at $500,000 per unit, the sale of 1758 N. Kingsley ranks in the top 3 transactions on PPU in East Hollywood over the past several years.
