SUCCESS STORY
12 Unit WeHo Sale with 20 GRM & 2.68% CAP
7949 Romaine Ave.
After owning the property for several decades and hassled by property management issues, the Seller brought KST onto the listing to get the job done.
Price
$
3,500,000
City
West Hollywood
Current Cap Rate
2.68
%
Price P/ Unit
$
291,667
Lot Size
6,202
SF
7949 romaine
About the Property
7949 Romaine was a 12-unit value-add investment property located in one of the trendiest neighborhoods of West Hollywood. Located 1 block south of Santa Monica Boulevard, the property was adjacent to some of the most popular shopping, dining and nightlife destinations along Santa Monica Blvd. and Fairfax Ave. Composed of (2) 2-bdrm. units and (10) 1-bdrm. units, the property presented a significant value-add opportunity to investors, as current rents are approx. 90% below market value for nicely remodeled units in the area.
Price
$
3,500,000
City
West Hollywood
Current Cap Rate
2.68
%
Price P/ Unit
$
291,667
Lot Size
6,202
SF
Background
7949 Romaine is a twelve-unit multifamily property located in a prime West Hollywood rental market, just 1 block South of Santa Monica Blvd (between Fairfax Ave and La Cienega Blvd). After owning the property for nearly three decades and being hassled by property management issues, the Seller brought KST onto the listing to get the job done.
Challenge
Despite being located in a super-walkable neighborhood and offering significant financial upside, potential investors felt the price was steep due to low rents, length of tenancy for a majority of the units and the amount of deferred maintenance.
Result
We targeted marketing for a “needle-in-a-haystack” 1031 exchange buyer looking for a value-add project in a ‘Grade-A’ location. Two days before Christmas, an outside agent had a 1031 exchange client that needed to close by the end of the year. They submitted an all-cash non-contingent offer shortly after touring the property, and escrow closed 2 weeks later at $3,500,000. Ultimately, the Seller was relieved to finally get the deal closed, having minimal success before bringing on KST’s multifamily expertise.
