SUCCESS STORY
37 Units in Prime Hollywood Sold in 90 Days
6720 Franklin Pl.
After the unfortunate passing of a family member and unable to manage the building properly, the stakeholders decided it was time to cash out.
Price
$
7,526,000
City
Hollywood
Current Cap Rate
5.61
%
Price P/ Unit
$
203,405
Lot Size
8,004
SF
6720 franklin
About the Property
6720 Franklin was a vintage 1920's character brick building located in the rapidly developing center of Hollywood, located 2 blocks north of Hollywood Blvd. and Highland Ave. This value-add opportunity generated approx. $57,300+ in gross monthly income with the opportunity for 28% upside in rents. 6720 Franklin represents an opportunity to acquire a beautiful “Old World”property in an excellent location, while still providing substantial value-add potential through continued renovations and rent increases.
Price
$
7,526,000
City
Hollywood
Current Cap Rate
5.61
%
Price P/ Unit
$
203,405
Lot Size
8,004
SF
Background
This beautiful "Old World" property is blocks from the rapidly-developing center of Hollywood, one block north of Hollywood Blvd and Highland Ave. In addition to the property's strategic location, 6720 Franklin presented a significant value-add opportunity as rents were approx. 28% below market value. This property was referred to KST by a Compass Hollywood residential agent, and sold in conjunction with a nine-unit value-add property in East Hollywood.
Challenge
We listed the property in early October. As interest rates approached 6.25%, many investors began to adopt a “wait and see” approach. In addition to growing market volatility, the property’s age presented a 2nd obstacle. Nearly a century old, there would be a smaller pool of buyers with the expertise necessary to deal with the intricacies of operating a vintage brick building.
Result
Although most investors remained on the sidelines, Kenny generated five offers in one month. Escrow opened in mid-November and closed 45 days later at $7,526,000. The sellers were relieved Kenny’s down market experience helped get the deal to the finish line. Meanwhile, our buyer is pleased to acquire a beautiful vintage property in an excellent location, while providing substantial value-add potential through continued renovations and rent increases.
