SUCCESS STORY
60 Unit Beverly Grove Portfolio Sold During COVID
Hayworth Ave. Portfolio
Phenomenal Beverly Grove portfolio closes at 98% of listed price during the height of the COVID-19 panic, without any price reduction.
Price
$
22,350,000
City
Beverly Grove
Current Cap Rate
2.81
%
Price P/ Unit
$
372,500
Lot Size
50,725
SF
hayworth portfolio
About the Property
The Hayworth Portfolio featured four apartment buildings of 60 units in the heart of Beverly Grove. Located on a quiet residential street just east of Crescent Heights Blvd, the portfolio was adjacent to some of the most popular shopping and dining destinations throughout Los Angeles, including The Grove, Beverly Center, Beverly Hills and West Hollywood. This generational portfolio had been with the prior owners for over 50 years, and offered significant financial upside, as current rents were approx. 58% below market compared to renovated units in the area.
Price
$
22,350,000
City
Beverly Grove
Current Cap Rate
2.81
%
Price P/ Unit
$
372,500
Lot Size
50,725
SF
Background
This phenomenal portfolio had been with the family since the family’s patriarch developed it in the 1960’s. With his passing and the beneficiaries tired of management headaches, they contacted KST to take advantage of their stepped-up basis and seek alternative investments.
Result
After the buyer removed all contingencies, we discovered that several of the units were non- conforming. Additionally, there were several unresolved and complicated title issues that needed to be addressed. Despite the due diligence obstacles and an uncertain future with the COVID pandemic, escrow closed in Mar. 2020 at $22.35M. The sellers were thrilled that Kenny helped them navigate an unprecedented situation and closed the deal at 98% of the listed price.
