SUCCESS STORY
Succesul Sale of Inherited Assets in East Hollywood
1801 N Harvard Blvd.
The property's beneficiaries, who inherited the property on a stepped-up basis, contacted KST to save on their capital gains taxes.
Price
$
2,085,000
City
East Hollywood
Current Cap Rate
5.04
%
Price P/ Unit
$
260,625
Lot Size
7,383
SF
1801 n harvard
About the Property
1801 N. Harvard was an eight unit value-add property operating at a 4.45% CAP and 13.5 GRM on current rents. Located just south of Franklin Ave (adjacent to Los Feliz). Constructed in 1956, the property featured (1) 2-bdrm. units and (7) 1-bdrm. units. Each bright and spacious unit averaged approx. 800 and offered approx. 21% rental upside compared to renovated units in the area. Well-maintained by the current owners, capital improvements included a new roof and fresh exterior paint.
Price
$
2,085,000
City
East Hollywood
Current Cap Rate
5.04
%
Price P/ Unit
$
260,625
Lot Size
7,383
SF
Background
Located adjacent to Los Feliz (just south of Franklin Ave), 1801 N. Harvard featured solid in-place financials and wass located near several neighborhood hubs filled with large corporate employers, a city college and an array of independent businesses. The property's beneficiaries inherited the property on a stepped-up basis and contacted KST to save on their capital gains tax.
Challenge
Despite the property's well-maintained condition and solid current financials, many investors began experiencing cold feet and adopted a "wait and see" approach.
Result
Although most investors remained on the sidelines, KST generated five offers within one month of receiving the listing. Despite several interest rate hikes, we identified a savvy multifamily investor unfazed by the outside noise and closed at $2,085,000. Our seller were thrilled we could get the job done for a second time in 2023, having sold a 10-unit building in Santa Monica for them in early February.
