SUCCESS STORY
Silver Lake New Construction Closes During COVID Lockdown
563 N Hoover St.
Despite having intentions to retain this luxurious asset, one of the investors had a change of heart and the decision was made to cash out.
Price
$
7,845,000
City
Silver Lake
Current Cap Rate
4.52
%
Price P/ Unit
$
713,182
Lot Size
15,004
SF
563 n hoover
About the Property
563 N. Hoover was a newly-constrcted 11-unit condo-quality multifamily property. This turnkey asset boasted an attractive unit mix of (7) 3-bdrm. units, (1) 2-bdrm. unit, and (3) 1-bdrm. units. These units are equipped with high-end appliances, luxurious finishes, state-of-the-art technology/security system, and spectacular views of the Hollywood Hills and DTLA. 563 N. Hoover was located in one of LA's trendiest neighborhoods filled with an abundance of popular boutiques and eateries. An investment in 563 Hoover puts you in the heart of Silver Lake, a high-demand rental area for young affluent professionals and families.
Price
$
7,845,000
City
Silver Lake
Current Cap Rate
4.52
%
Price P/ Unit
$
713,182
Lot Size
15,004
SF
Background
The sellers spared no expense constructing this luxurious 11-unit building in a rapidly developing Silver Lake neighborhood. Despite having intentions to retain the property, one of the investors had a change of heart and the decision was made to cash out.
Challenge
With the sellers having limited flexibility on price, Kenny and Max were looking for a “needle in a haystack” buyer who would appreciate the quality of construction and strong in-place tenant profiles. Kenny and Max emphasized in-person tours to highlight the quality of the asset, compared to other new construction buildings on the market. In total, they toured more than 30 different buyers over 4 months of marketing.
Result
Contingencies were removed in mid-March, as the country braced for the apex of the COVID-19 pandemic, and escrow closed in June. The sellers were thrilled and relieved that Kenny and Max were able to close the deal at 99% of the listed price in the middle of a global pandemic. Meanwhile, having seen the stock market drop in 30 days, the buyer was relieved to acquire a safe asset to weather the economic uncertainty. Rent collections were 100% in April, May and June.
