A LA Multifamily success story in Hollywood
It Only Takes One Buyer When The Market Gets Selective...
922 N Hudson Ave, Los Angeles, CA 90028
Well-positioned assets still trade; but clean closings depend on aligning pricing, financing realities, and the right buyer profile.
Offering Price
$3,425,000
City
Hollywood
Current CAP
5.14%
Price per unit
$285,417
Lot Size
6,821 SF
922 N Hudson Ave
Offering Price
$3,425,000
Number of Units
12 Units
Bldg. Size
9,038 SF
Price per Foot
$379
Year Built
1985
Market CAP
5.43%
Zoning
LAR3
Background
The sellers of 922 N. Hudson Ave were long-time clients and close friends of Kenny who had owned the property for decades. Like many Los Angeles multifamily owners, they had been closely monitoring shifting market conditions, including valuation pressure, increasing regulation, rising insurance costs, and ongoing maintenance demands.
At this stage of ownership, the sellers were less focused on maximizing future growth and more interested in simplifying their portfolio and reclaiming time. They were not under pressure to sell but wanted a clear plan, realistic pricing guidance, and a smooth execution if they decided to move forward.
Having worked with our team on prior transactions, the sellers returned to us for strategic guidance on how and when to bring 922 N. Hudson Ave to market.
Challenge
Despite strong property fundamentals, buyer sentiment at the time of marketing was highly selective. We brought 922 N. Hudson Ave to market at a 4.89% CAP rate and a 12.81 GRM on current rents. With interest rates hovering between 6.0% and 6.5%, most leveraged buyers could not make the deal pencil using new debt.
The challenge was not generating interest. It was identifying the small subset of buyers who could actually execute. Realistically, the buyer pool was limited to 1031 exchange buyers or all-cash investors who valued long-term stability, rent control exemption, and regulatory flexibility more than day-one leveraged yield.
Rather than chasing volume or overexposing the property to mismatched buyers, our strategy focused on positioning 922 N. Hudson Ave directly in front of qualified buyer profiles who understood both the asset and the submarke
Result
Several weeks into marketing, an outside agent introduced a 1031 exchange buyer who was already familiar with the Hollywood submarket and comfortable underwriting the deal without new debt. The buyer recognized the value of the rent control exemption, limited capital exposure, and long-term hold characteristics.
Escrow closed cleanly at $3,425,000, representing approximately 99% of the list price, with minimal credits negotiated. In a market where escrow cancellations had become increasingly common, the transaction reinforced a consistent takeaway across recent closings.
