A LA Multifamily success story in Melrose Hill
Another 90004 Property Sells in 120 Days
436 Normandie Place, Los Angeles, CA 90004
436 Normandie Place generated 4 offers and sold for $1.27M to a buyer who already owned nearby and valued the property’s larger floor plans.
Offering Price
$1,270,000
City
Melrose Hill
Current CAP
7.67%
Price per unit
$211,667
Lot Size
5,279 SF SF
436 Normandie Place
Offering Price
$1,270,000
Number of Units
6 Units
Bldg. Size
5,560 SF SF
Price per Foot
$228
Year Built
1957
Market CAP
10.71%
Zoning
LAR3
Background
436 Normandie Place came through the same ownership group and long-time KST relationship as 4707 Beverly Blvd. After decades of owning Los Angeles multifamily properties, the sellers were ready to sell several long-held assets. Beverly became the first closing. Normandie was the second.
The 6-unit property offered larger floor plans than many smaller buildings in the surrounding area, with (2) 3-bdrm. / 2-bath units and (4) 2-bdrm. / 1-bath units. It came to market at $1.375M, or $229,167 per unit, which was a relatively high price per unit for an unrenovated building in the immediate area.
Recent system work and approx. 14% rental upside gave buyers more to consider against that pricing. The larger units were another important part of the value, particularly for a buyer who understood the neighborhood and was comfortable with the specific block.
That became increasingly important as buyers started touring the property.
Challenge
A large part of the challenge at 436 Normandie had less to do with the building itself and more to do with how buyers viewed the immediate location.
The property sits near Melrose Hill, Koreatown, Chapman Market, Larchmont Village, and Paramount Studios. Those destinations helped establish the broader location, but buyers still needed to decide how they felt about the specific stretch of Normandie Place.
Serious buyers needed to do more than review the OM. They needed to tour the property, spend time on the surrounding streets, and decide whether the larger floor plans, recent system work, and remaining rental upside justified the price.
That is one of the realities of Los Angeles multifamily. A map can show what is nearby, but it cannot tell a buyer how a particular block feels or whether they are comfortable owning there.
At 436 Normandie, that made firsthand familiarity with the area especially valuable.
Result
436 Normandie Place sold for $1.27M after generating 4 offers and spending 57 days on market. The transaction closed 120 days from list to close.
The eventual buyer found the property online and contacted KST directly. He already owned single-family homes nearby, which meant he knew the immediate area better than buyers evaluating the building from a distance.
This was his first apartment building. He saw value in the larger 2- and 3-bdrm. floor plans, understood the surrounding blocks, and ultimately reached a price that made the acquisition work for him. KST represented both sides of the transaction.
436 Normandie was the second closing in the sellers’ 3-property 90004 portfolio, following 4707 Beverly Blvd. The final property has now closed as well, completing the sale of all 3 long-held assets.
For owners, the takeaway is straightforward. Proximity to well-known neighborhoods can create interest, but buyers still make decisions property by property and block by block. At 436 Normandie, the right buyer understood the location firsthand and saw value in a unit mix that others had weighed more cautiously.
