About The Property

Located in a PRIME West Hollywood location, 1 Block North of Santa Monica Blvd, this ten-unit value-add property is minutes from several neighborhood hubs (SM Blvd, Fairfax Ave and La Brea Ave). 1116 N. Spaulding features (2) 2-Bdrm and 2-Bath units and (8) 1-Bdrm units. This corner lot property with alley access features a gated subterranean parking garage with 8 parking spaces, an additional parking area with 5 spaces, a community laundry room and a new roof.

Stats

Price $3,200,000

Year Built 1965

City West Hollywood

Units 10

Current CAP 4.41%

Price p/ Sq. ft. $421

Background

Located just north of Santa Monica Blvd & Fairfax Ave and offering significant rental upside, his ten unit property was a “diamond in the rough” located in the heart of a highly-coveted and super-walkable neighborhood. A Compass Beverly Hills agent, who had an established relationship with the seller, reached out to KST to help the family cash out. We marketed this property in conjunction with a Spanish-style fourplex blocks from The Grove.

Challenge

Despite the noticeable upside, potential investors felt the price was steep because the property featured a majority of long-term tenants and low rents. Additionally, we listed the property in early April, when interest rates were around 4.25%. As rates rose towards 6%, Kenny knew he had to manage the stakeholders’ expectations and identify an experienced investor unfazed by an evolving market.

Result

Kenny identified an experienced repeat client who opened Escrow in early April. As other broker’s deals fell apart in an increasingly volatile market, Kenny’s “down market” experience helped navigate the buyer and seller to the finish line. After solving several probate/title obstacles, the deal closed at $3,200,000. The sellers were thrilled to cash out, and our buyer is delighted with the acquisition, seeing this as a massive long-term win in a premium LA rental market.

Speaking for myself and everyone involved, you were absolutely the best broker we could have selected to market our portfolio. You found an incredible buyer and were able to guide us through so many challenges, including a global pandemic, and secured us a price beyond our expectations.

- Seller (60 Units by The Grove)

“I cannot say enough great things about KST. They take care of you, they have the connections needed, and they get the job done! We were amazed at how quickly our sale went through during the COVID pandemic.”

- Seller (4 Units in Beverly Grove)

“It was truly a pleasure working with Kenny. He is professional, honest, hardworking and most importantly did what he said he would. Kenny sold the property at list price in less than 60 days from start to finish.”

- Seller (Beachfront Generational Asset in Playa del Rey)

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