A LA Multifamily success story in Melrose Hill
Value-Add Property Draws 7 Offers and Sells for $1.515M
4707 Beverly Blvd, Los Angeles, CA 90004
4707 Beverly Blvd generated 7 offers and sold for $1.515M, with the buyer willing to take on the work behind approx. 31% rental upside.
Offering Price
$1,515,000
City
Melrose Hill
Current CAP
7.24%
Price per unit
$168,333
Lot Size
7,256 SF
4707 Beverly Blvd
Offering Price
$1,515,000
Number of Units
9 Units
Bldg. Size
6,681 SF
Price per Foot
$227
Year Built
1957
Market CAP
11.15%
Zoning
LAR3
Background
The opportunity came through a KST relationship that goes back more than a decade. A longtime client who had been gradually diversifying out of Los Angeles multifamily introduced KST to the sellers, who had owned a portfolio of apartment buildings for decades and were considering a similar move.
Like many long-time owners, they had reached a point where increasing regulation and the day-to-day demands of operating apartment buildings in Los Angeles were becoming a larger part of the ownership decision.
4707 Beverly Blvd was one of 3 properties in 90004 that KST brought to market for the ownership, along with 101 N Kenmore Ave and 436 Normandie Pl. The 9-unit building sits along Beverly Blvd near Larchmont Village, Koreatown, Paramount Studios, and Chapman Market. Capital improvements had already been completed, while the existing rents left approx. 31% upside.
There was plenty for buyers to like. The question was how much work they were willing to take on to reach that upside.
Challenge
Activity was not the issue. Buyers recognized the location and the potential to improve the income, but most of the units were occupied by long-term tenants.
Reaching the approx. 31% rental upside would take time and could require interior renovations and potential relocation costs. Buyers were weighing that work alongside higher operating expenses, more expensive financing, and the additional considerations that come with an older rent-controlled building.
That made pricing especially important. Buyers needed enough room to account for what the property produced today, the capital they would eventually put into the units, and the time required for the income to improve.
The demand was there. The challenge was finding the buyer who was comfortable with both sides of the deal.
Result
4707 Beverly Blvd sold for $1.515M after generating 7 offers and spending 66 days on market. The transaction closed 120 days from list to close.
The property was part of a 3-building portfolio in 90004 that KST brought to market alongside 101 N Kenmore Ave and 436 Normandie Pl. All 3 properties are now sold, allowing the ownership to move forward after decades of Los Angeles multifamily ownership.
For owners, the takeaway is straightforward. Location and rent upside can still create meaningful buyer interest, but buyers are looking closely at the time and money required to get there. Pricing has to leave enough room for that work.
At 4707 Beverly, 7 offers showed that buyers saw the potential. Getting from interest to a closing came down to finding the buyer who was comfortable with the building as it operated today and what would still be required over time.
