SUCCESS STORY
3.44% CAP & 18.39 GRM Fourplex Sale by The Grove
439 N Hayworth Ave.
We achieved 2021 pricing in 2024, and identified a property mgmt. company who paid $470K per unit, 3.44% CAP and 18.39 GRM.
Price
$
1,881,000
City
Fairfax District
Current Cap Rate
3.44
%
Price P/ Unit
$
470,250
Lot Size
6,613
SF
439 n hayworth
About the Property
439 North Hayworth was a value-add fourplex in the heart of the Fairfax District, an "A+" rental market under constant demand by high-income young professionals. Located blocks from The Grove and several other thriving neighborhood hubs Melrose Ave, Fairfax Ave, and W 3rd St, this charming French-Normandy style fourplex was near various trendsetting retailers, heavily-visited restaurants, and lively nightlife options. The property featured (4) spacious 2-bdrm units that average approx. 1,175 with approx. 42% rental upside.
Price
$
1,881,000
City
Fairfax District
Current Cap Rate
3.44
%
Price P/ Unit
$
470,250
Lot Size
6,613
SF
Background
439 North Hayworth was a value-add fourplex in the heart of the Fairfax District, an "A+" rental market under constant demand by high-income young professionals, and home to The Grove and several thriving retail hubs. The property featured (4) 2-bdrm. units with approx. 40% rental upside. Despite the promise of heavy development, such as the redevelopment of CBS Television City, the Sellers contacted Max to cash out because of their stepped-up basis due to Prop. 19.
Result
We brought the property back to market in Aug. 2023, as interest rates approached 7%. With limited flexibility in price, we offered the property at a 3.17% CAP, 19.54 GRM, and $425 per foot. This dramatically shrunk the buyer pool, as financing options were ruled out. With an established database of approx. 20,000 LA agents and principals, we identified a full-service property management company (with nearly 1,700 units in their portfolio) who loved the location and saw the promise. Escrow closed 60 days later at $1,881,000.
