A LA Multifamily success story in Pico-Robertson
Over-Asking Pico-Robertson Sale in 75 Days
8650 Whitworth Avenue
This client was referred to us by a long-time client. In 75 days, we generated 15+ offers, and sold the property for 107% of the listed price.
Offering Price
$2,052,000
City
Pico-Robertson
Current CAP
5.28
Price per unit
$342,000
Lot Size
7,000 SF SF
8560 whitworth
Offering Price
$2,052,000
Number of Units
6 Units
Bldg. Size
7,636 SF SF
Price per Foot
$269
Year Built
1959
Market CAP
6.85
Zoning
LAR4
Background
8560 Whitworth was a 6-unit value-add complex offered at $249 per foot, 5.6% CAP & 11.57 GRM on current rents.It was adjacent to Beverly Hills and Carthay Square, 2 exclusive neighborhoods under constant demand by high-income young professionals and families. Built in 1959, this corner-lot property featured (2) 3-bdrm. units & (2) 2-bdrm.units, and (2) 1-bdrm. units. 8560 Whitworth was offered at $316,667 per unit, $249 per foot, 5.60% CAP and 11.57 GRM on current rents. This value-add opportunity with approx. 23% rental upside. At projected market rents, property will stabilize at a 8.34% CAP and 9.01 GRM. Property amenities include 6 tandem parking spaces (covered and surface), community laundry, and seismic retrofitting was not required (buyer to verify).
However, there was a major drawback: the property had a substantial amount of deferred maintenance. The beneficiary, who recently inherited the property, was referred to us by a long-time client of Kenny's, looking to sell and cash out.
Result
The property's deferred maintenance posed a challenge, especially for an inexperienced investor. The building still had its original 1950s electrical systems, galvanized plumbing instead of copper, and an aging roof over 15 years old. Additionally, several potential buyers struggled to obtain insurance quotes, and the vacant units required significant work to reach market rents.
Our marketing efforts generated 15 offers. We carefully vetted and toured all qualified buyers, fostering a competitive bidding environment that culminated in a round of best-and-final offers. Our motivated seller, ready to move forward, accepted a non-contingent offer from a buyer specifically targeting investments in Pico-Robertson. 60 days later, the property sold for $152,000 above the asking price, securing a successful outcome for all involved.
